Energy Petrochemicals and Plastics 61

Friday, April 24, 2020

Energy Petrochemicals and Plastics 61

1          Oil Price Fundamental Daily Forecast – Light Short-Covering Ahead of Weekend
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-light-short-covering-ahead-of-weekend-645813

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging higher shortly after the regular session opening. Helping to underpin prices on Friday is the news that some producers like Kuwait said they would move to cut output swiftly to try to counter the demand destruction for fuels caused by the coronavirus pandemic.

2          Natural Gas Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-demand-destruction-still-painting-bearish-picture-645806

Natural gas futures are inching lower on Friday, following the previous session’s steep plunge. Natural Gas Intelligence (NGI) said yesterday, “Major moves along the natural gas futures curve continued Thursday, with early selling intensifying once traders had time to digest the latest storage data.“

There was very little movement in spot gas prices, however, with little change in weather patterns seen for the end of the week. NGI’s Spot Gas National Average fell a half-cent to $1.705.

3          Weekly Resin Report: Historically Low Resin Prices Fail to Ignite Sales
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-historically-low-resin-prices-fail-ignite-sales/207933889962870

It was a challenging week for spot resin trading, reports the PlasticsExchange in its Market Update. The flow of resin requests diminished and those opportunities that did arise were still difficult to complete. Resellers continued to de-stock, generally limiting purchases to when they had back-to-back sales. Spot commodity resin prices slid further, as buyers were scarce and supplies accumulated.

4          Oil heads for steep weekly slide after coronavirus turmoil
https://www.reuters.com/article/us-global-oil-idUSKCN22605I
Oil prices rose on Friday but headed for their third weekly loss as production shutdowns failed to keep pace with sliding demand due to the coronavirus crisis. Prices are heading for their eighth weekly loss in the last nine, with Brent on course for a 22% drop this week and U.S. West Texas Intermediate (WTI) set for a fall of more than 6%.

5          COVID-19 demand update: Oil seen down 10.4%, jet fuel down 31%, road fuel down 10.5% in 2020
https://www.rystadenergy.com/newsevents/news/press-releases/covid-19-demand-update-oil-seen-down-10point4-jet-fuel-down-31-road-fuel-down-10point5-in-2020/

In another consecutive revision of our weekly estimates, our newest forecast for oil demand now projects a decrease of 10.4% for 2020, or 10.3 million barrels per day (bpd) year-over-year. Our estimates show that total oil demand in 2019 was approximately 99.5 million bpd, which is now projected to decline to 89.2 million bpd in 2020. To put the number into context, last week we projected a decrease to 90.3 million bpd.

6          Gasoline, the refiner’s favorite child, is the key fuel behind the global oil demand doom
https://www.rystadenergy.com/newsevents/news/press-releases/gasoline-the-refiners-favorite-child-is-the-key-fuel-behind-the-global-oil-demand-doom/

As the global population puts the breaks on ground transportation thanks to lockdowns, road fuels – which make up about half of the world’s oil demand – has become the segment most impacted by the Covid-19 pandemic. Among road fuels, gasoline is hardest hit. As it is the most-refined fuel, its decrease will in itself cut global oil demand by 3.63 million barrels per day (bpd) or 3.6% in 2020, according to Rystad Energy estimates.

7          Russia slashes May oil exports from sea ports before OPEC+ cuts: schedule
https://www.reuters.com/article/us-russia-oil-exports-idUSKCN2261EF
Russian oil companies will cut their crude oil loadings from Baltic ports and Black Sea’s Novorossiisk in May to 5.42 million tonnes, the lowest level in 20 years, the preliminary loading schedule seen by Reuters showed on Friday.

Russia, which has joined an OPEC+ pact to curb oil supplies, has agreed to cut its output by 8.5 million bpd starting on May 1, from a baseline of 11 million bpd.

8          Are We Nearing Peak Oil Supply?
https://www.forbes.com/sites/woodmackenzie/2020/04/24/are-we-nearing-peak-oil-supply/
Are we now deep in the abyss? Up to our necks in it, if the oil price is any guide. Brent has now tested sub-U.S.$20 a barrel in this downturn and WTI sub-zero, albeit briefly and in somewhat freakish circumstances. Where are the signs of stress across the oil value chain? And what are the prospects of finding an exit route to recovery? I talked it through with Ann-Louise Hittle of our Macro Oils team.

9          Maersk Drilling Loses Contracts
https://www.rigzone.com/news/maersk_drilling_loses_contracts-24-apr-2020-161877-article/
Shell and Aker BP Cancel Maersk Drilling Contracts

Maersk Drilling received notice of early termination of two drilling contracts, one with a Shell subsidiary and another with Aker BP. The company said it expects to receive compensation in the form of early termination fees for both contracts.

10        Eni slashes 2020 capex budget by more than £2bn due to Covid-19 and oil price crisis
https://www.energyvoice.com/oilandgas/237193/eni-slashes-2020-capex-budget-by-more-than-2bn-due-to-covid-19-and-oil-price-crisis/

Italian oil and gas exploration firm Eni has announced that it will slash its capital expenditure (CAPEX) budget for 2020 by more than £2 billion.

The reduction, which Eni said it due to current crisis scenario, has seen the firm make a 30% reduction in 2020 and review its industrial plan for the year to preserve the robustness of its balance sheet.

11        Buyers cancel US LNG cargo loadings
https://www.lngindustry.com/liquid-natural-gas/24042020/buyers-cancel-us-lng-cargo-loadings/
According to the latest Reuters report, Asian and European LNG buyers have cancelled approximately 20 LNG cargoes due to be loaded in the US in June.

These cancellations are the result of the COVID-19 coronavirus pandemic dampening global gas demand and causing prices to fall to record lows.

12        Oil Steadies as Attention Turns to Cuts
https://www.rigzone.com/news/wire/oil_steadies_as_attention_turns_to_cuts-24-apr-2020-161874-article/

After a dramatic week that saw prices plunge below zero for the first time in history, oil continued to claw back losses as attention turned to output cuts in response to the demand hit from coronavirus lockdowns.

New York futures for June delivery rose for a fourth day toward $17 a barrel after the May contract fell as low as -$40.32 on Monday before expiring the next day. U.S. operators have already started to shut in old wells and halt new drilling, actions that could reduce output by 20%, while Kuwait and Algeria said they are reducing production earlier than required to under the OPEC+ deal.

13        Withdrawals from natural gas storage this winter were lowest since 2015–16
https://www.eia.gov/todayinenergy/detail.php?id=43475
Working natural gas in storage in the Lower 48 states as of March 31, 2020, totaled 2,008 billion cubic feet (Bcf), 19% more than the previous five-year (2015–19) average for the end of the heating season, according to EIA’s Weekly Natural Gas Storage Report. The 2019–20 heating season, which ran from November 1, 2019, to March 31, 2020, ended with the most working natural gas in storage since the 2016–17 winter, with 1,718 Bcf in net withdrawals, the least in four winters. Continued growth in natural gas production and relatively mild winter temperatures accounted for relatively higher inventory levels.

14        The Oil Market Crash Is Far From Over
https://oilprice.com/Energy/Oil-Prices/The-Oil-Market-Crash-Is-Far-From-Over.html
WTI prices may have steadied somewhat after a wild couple of days, but the physical market for crude is still collapsing.

Energy stocks posted sharp gains on Thursday as WTI prices “surged” nearly 30 percent to…$17 per barrel. The nascent rebound in oil prices has eased the immediate crisis, but before Monday, WTI in the teens would have been considered catastrophic; now it seems downright reasonable. Amazing what negative $37 WTI will do to perceptions.

15        In Rare Development, Oil Majors Are Forced To Cut Output Under OPEC Deal
https://oilprice.com/Latest-Energy-News/World-News/In-Rare-Development-Oil-Majors-Are-Forced-To-Cut-Output-Under-OPEC-Deal.html

A British Petroleum-led project in Azerbaijan will have to cut production in May for the first time as Azerbaijan will need to take drastic measures to meet its new quota under the OPEC production cut deal, three sources told Reuters on Thursday.

This is rare for Big Oil, who is typically exempt from such production restrictions because countries need these big oil players in their backyards to develop oil resources. Big Oil has never seen a mandatory production cut in Azerbaijan.

16        US Fracking Set for Biggest Ever Monthly Drop
https://www.rigzone.com/news/us_fracking_set_for_biggest_ever_monthly_drop-24-apr-2020-161876-article/

Rystad estimates that the total number of started frac operations will end up below 300 wells in April, comprising close to 200 in the Permian and less than 50 wells each in Bakken and Eagle Ford. This translates into a 60 percent decline in started frac operations between the peak level seen in January-February and April 2020, Rystad outlined.

17        Saudi Arabia To Take On Billions In Debt To Survive The Oil Price Crisis
https://oilprice.com/Latest-Energy-News/World-News/Saudi-Arabia-To-Take-On-Billions-In-Debt-To-Survive-The-Oil-Price-Crisis.html

Saudi Arabia may have to borrow as much as $58 billion this year to cover a budget shortfall caused by the oil price slump, Bloomberg reports, citing Finance Minister Mohammed al-Jadaan.

Al-Jadaan told media this week that the Kingdom might issue bonds worth $26.57 billion (100 billion riyals) this year in addition to an earlier issue of $31.88 billion (120 billion riyals) worth of debt.

18        World Bank slashes outlook for oil, metals as coronavirus crushes demand
https://www.reuters.com/article/us-global-oil-worldbank-idUSKCN2252EC
The World Bank slashed its outlook for oil and metals prices on Thursday due to the economic fallout of the coronavirus pandemic and said the commodity market shock could hit developing countries hardest.

Crude oil prices are expected to average $35 a barrel this year, down 43% from the average in 2019, the World Bank said, marking a sharp downward revision from its October forecast.

19        Petrochemical companies work to overcome imbalances caused by Covid-19
https://www.bicmagazine.com/industry/refining-petchem/pu-petrochemical-companies-work-to-overcome-imbalances-cause/

Before Covid-19 petrochemical plants could depend on co-production of multiple chemical intermediates with predictable demand for each but producers now struggle to find new balances, executives participating on a Petrochemical Updatewebinar on April 16, 2020 said.

Covid-19 has created imbalances and forced petrochemical companies to intensify demand management and reconfigure production to meet a new, rapidly changing and uncertain environment.

20        Coronavirus, oil price crash – impact on chemicals
https://www.icis.com/explore/resources/news/2020/04/23/10462108/topic-page-coronavirus-oil-price-crash-impact-on-chemicals

Petrochemical shares in Asia were mostly higher on Thursday, tracking the overnight rally on Wall Street which also fueled the rebound in oil prices. At 03:12 GMT, Japan’s Mitsui Chemicals was up 1.52%, South Korea’s LG Chem rose by 0.28% and Hong Kong-listed Sinopec Shanghai Petrochemical Co was up almost 2%.

21        TechnipFMC books $3.25B loss; cuts execs pay and dividend
https://www.offshore-energy.biz/technipfmc-books-3-25b-loss-cuts-execs-pay-and-dividend/
TechnipFMC has reported first-quarter 2020 loss of $3.25 billion or $7.28 per diluted share against $21 million profit same time last year.

The services major has seen the results affected by after-tax charges and credits totaling $7.17 per share, primarily driven by non-cash impairment charges.

TechnipFMC warned the market on impairment impact prior to releasing its earnings results.

22        Bankruptcy looms over U.S. energy industry, from oil fields to pipelines
https://www.reuters.com/article/us-global-oil-usa-restructuring-idUSKCN2250FQ
U.S. shale producers, refiners and pipeline companies are scrambling for cash and face likely restructuring as they struggle under heavy debt loads and a dual supply/demand shock in the worst crisis the oil industry has faced.

23        Oil Plunges Below Zero for First Time Ever
https://www.rigzone.com/news/wire/oil_plunges_below_zero_for_first_time_ever-20-apr-2020-161821-article/

Oil futures collapsed to below zero for the first time ever as the deepening economic turmoil caused by the coronavirus crisis left traders desperate to avoid taking delivery of physical crude.

In an unprecedented day of trading, the price for the May contracts wiped out all value, breaking every low for oil prices since 1946. The exchange where WTI futures trade said the contract would be allowed to price below zero. The extreme move showed just how oversupplied the U.S. oil market has become with industrial and economic activity grinding to a halt as governments around the globe extend shutdowns due to the swift spread of the coronavirus. An unprecedented output deal by OPEC and allied members a week ago to curb supply is proving too little too late in the face a one-third collapse in global demand.

24        Coronavirus: Tracking The Impact On European Gas, Power And Chemicals
https://www.woodmac.com/news/opinion/coronavirus-tracking-the-impact-on-european-gas-power-and-chemicals/

Coronavirus has altered the picture. Amongst its effects are three near-term demand boosts. First, widespread stockpiling of packaged items such as cleaning products and bottled water. And while the stockpiling is abating, the increased use of delivery services is providing a secondary boost – again, particularly to packaging. Medical and hygiene products are providing a third uplift, as global communities fight the spread of the virus.

Recycling Renewables and Sustainable Business 32

Friday, April 24, 2020

Recycling Renewables and Sustainable Business 32

1          Why Plastic Waste Is a C-Suite Issue
https://hbr.org/2020/04/why-plastic-waste-is-a-c-suite-issue?utm_source=linkedin&utm_medium=social&utm_campaign=hbr

Since its invention and widespread introduction into the economy some 70 years ago, plastic has become a valuable part of business and daily life. So much so, in fact, that we have created more than 8.3 billion metric tons of it around the world. If we were able to take all of that plastic and turn it into a single grocery bag, it could hold the entire planet. If business continues as usual, 30 years from now projections say we will have produced enough plastic waste to double-bag the Earth.

2          Coca-Cola and Pepsi falling short on pledges over plastic
https://www.theguardian.com/environment/2020/apr/22/coca-cola-pepsi-falling-short-pledges-over-plastic-tearfund-report

Coca-Cola and Pepsi are not doing enough to reduce their plastic waste footprint globally, according to a report.

The charity Tearfund has compiled a league table of how the companies, and Unilever and Nestlé, are faring in their commitments set against a three-point plan.

3          Earth Day 2020: How Chemical Recycling Is Building Sustainable Solutions
https://www.plasticstoday.com/recycling/earth-day-2020-how-chemical-recycling-building-sustainable-solutions/67150771162866

Chemical recycling, aka “advanced recycling,” provides a way to rid the world of difficult-to-recycle plastics and produce many valuable end products. According to information supplied by Eastman Chemical (Kingsport, TN), chemical recycling alters the physical form of used plastics, either by dissolving the plastics with chemicals or using heat to break down polymers into their original components (monomers), resulting in a purified form of plastic or chemical products and feedstocks used to create new plastics, fuels, or other products.

4          New study examines impacts of sourcing metals for EV batteries and renewables
https://www.offshore-energy.biz/new-study-examines-impacts-of-sourcing-metals-for-ev-batteries-and-renewables/

The study commissioned by DeepGreen examines how we can source the massive amount of mineral resources required for a wholesale move away from fossil fuels with the least amount of damage to the planet.

As calls for a transition to renewable energy and electric transport grow louder in the face of increasing global climate chaos, demand for certain EV battery metals is projected to increase by 11 times the current level by 2050, according to the World Bank, and shortages in nickel, cobalt and copper have been predicted to emerge as soon as 2025.

5          BlackRock says sustainability reports might slide during pandemic
https://www.reuters.com/article/us-health-coronavirus-blackrock-idUSKCN2241JP
Top asset manager BlackRock Inc, which has vowed to put more focus on climate issues, said that companies might give a lower priority to sustainability reports as they struggle with the COVID-19 pandemic.

In a stewardship document provided by a BlackRock (BLK.N) spokesman late on Tuesday, the firm suggested it would tolerate the change. BlackRock also took a neutral stance on the question of whether companies should continue to pay dividends or buy back shares, and said it expected companies to provide shareholders the chance for “meaningful participation” when they move annual meetings to cyberspace.

6          New Study Reveals Just How Much Cleaner EVs Are
https://oilprice.com/Energy/Energy-General/New-Study-Reveals-Just-How-Much-Cleaner-EVs-Are.html
Amid a global transport industry crisis brought about by the coronavirus pandemic, a study from clean energy nonprofit Transport and Environment has added strength to the argument that EVs emit far less CO2 than internal combustion engine vehicles do over their lifetimes.

The UK nonprofit said in its report that it had taken into account all relevant factors, including the carbon dioxide emissions resulting from the production of the electricity that feeds an EV as well as the emissions that accompany the extraction of mineral resources that go into EV batteries. They even factored in the costs of building a power plant.

7          EV charging: how will US power grids manage the demand?
https://blogs.platts.com/2020/04/24/ev-charging-power-grid-demand/
Depending on the region, S&P Global Platts Analytics forecasts plug-in electric vehicles to reach total cost of ownership parity with internal combustion engine vehicles over the next 10 years.

Market fundamentals will begin to drive plug-in electric vehicle (PEV) sales to a greater degree as consumers become aware of the savings associated with reduced operational costs.

8          Could Microsoft’s climate crisis ‘moonshot’ plan really work?
https://www.theguardian.com/environment/2020/apr/23/microsoft-climate-crisis-moonshot-plan
Microsoft drew widespread praise in January this year after Brad Smith, the company’s president, announced their climate “moonshot”.

While other corporate giants, such as Amazon and Walmart, were pledging to go carbon neutral, Microsoft vowed to go carbon negative by 2030, meaning they would be removing more carbon from the atmosphere than they produced.

9          US offshore wind will make major contribution to economic recovery say speakers in IPF Virtual Conference
https://www.renewableenergymagazine.com/wind/us-offshore-wind-will-make-major-contribution-20200424

Attendees from across the globe, including Europe, China, Mexico, Canada, and the US, heard 30 expert speakers and provided feedback on time-sensitive information affecting the offshore wind industry.

The Network’s IPF Virtual (also known as the International Partnering Forum), featured leading government regulators seeking input from the industry. Jim Bennett, chief, Office of Renewable Energy Programs, Bureau of Ocean Energy Management (BOEM) told participants that the overall demand for offshore wind energy is high and growing, and that the industry is mostly on course to maintain its rapid development.

10        COVID Shows Need For Clean Air And Cheap Energy. Utilities Can Get Both Via “All-Source Procurement.”
https://www.forbes.com/sites/energyinnovation/2020/04/23/covid-shows-need-for-clean-air-and-cheap-energy-utilities-can-get-both-via-all-source-procurement/

COVID-19 has reminded Americans of the importance of cheap electricity and clean air – consumers and businesses are looking for ways to save money, and people who breathe dirty air suffer higher mortality rates from the virus. One of the quickest ways to overcome both challenges, at least in the U.S. power sector, has been replacing fossil fuel generation with renewable energy.

11        Earth Day at 50: A look to the past offers hope for the planet’s future
https://www.canadianmanufacturing.com/environment-and-safety/earth-day-at-50-a-look-to-the-past-offers-hope-for-the-planets-future-251731/

Fifty years ago, on April 22, 1970, millions of people took to the streets in cities and towns across the United States, giving voice to an emerging consciousness of humanity’s impact on Earth. Protesters shut down 5th Avenue in New York City, students in Boston staged a “die-in” at Logan airport and demonstrators in Chicago called for an end to the internal combustion engine.

12        Insect numbers down 25% since 1990, global study finds
https://www.theguardian.com/environment/2020/apr/23/insect-numbers-down-25-since-1990-global-study-finds

The biggest assessment of global insect abundances to date shows a worrying drop of almost 25% in the last 30 years, with accelerating declines in Europe that shocked scientists.

The analysis combined 166 long-term surveys from almost 1,700 sites and found that some species were bucking the overall downward trend. In particular, freshwater insects have been increasing by 11% each decade following action to clean up polluted rivers and lakes. However, this group represent only about 10% of insect species and do not pollinate crops.

13        Sweden becomes third European country to complete coal plant phaseout
https://ieefa.org/sweden-becomes-third-european-country-to-complete-coal-plant-phaseout/
Sweden has become the third European country to complete its phase out of coal power, after last week confirming the closure of Stockholm Exergi AB’s Värtaverket plant.

The news came in the same week as Austria shuttered its last coal plant and sees the two countries join Belgium in having completely removed coal power from their grids.

14        Wind, solar help push grid emissions to record low, prices to four year low
https://reneweconomy.com.au/wind-solar-help-push-grid-emissions-to-record-low-prices-to-four-year-low-61945/

The Australian Energy Market Operator – in its latest Quarterly Energy Dynamics report – describes a volatile first quarter of 2020 for the main grid, which experienced days of huge demand and volatility, record temperatures, bushfires, several transmission failures that caused separations of state grids, then a spate of unusually mild weather that caused record demand lows, and finally the impact of the Covid-19 pandemic, including a crash in the international oil market.

15        ‘It’ll cause a water war’: divisions run deep as filling of Nile dam nears
https://www.theguardian.com/global-development/2020/apr/23/itll-cause-a-water-war-divisions-run-deep-as-filling-of-nile-dam-nears

From his office in central Khartoum, Ahmed al-Mufti prepares every day for what he believes is the water war to come.

This conviction led Mufti, a prominent human rights lawyer and water expert, to quit the Sudanese delegation that is negotiating Nile water issues with Egypt and Ethiopia.

16        Impact of Covid-19 on the global energy sector – pv magazine International
https://www.pv-magazine.com/2020/04/24/impact-of-covid-19-on-the-global-energy-sector/
The energy sector has already felt the impact of Covid-19. The outbreak has contributed to a dampened demand for oil, resulting in plummeting prices and declining production, especially in the wake of the Russia-OPEC price war. According to the IEA Oil Market Report – April 2020, global oil demand is expected to fall by a record 9.3 mb/d year-on-year in 2020. Demand in April is estimated to be 29 mb/d lower than a year ago, down to a level last seen in 1995. Covid-19 has also accelerated the continued drop of gas prices.

17        How Working From Home Will Impact Oil Demand Forever
https://oilprice.com/Energy/Crude-Oil/How-Working-From-Home-Will-Impact-Oil-Demand-Forever.html
It’s day 33 for me. I leave the house to walk the dog and occasionally swing by the corner store. But that’s about it. I haven’t ridden in a car since March 20th, nor a bus or any form of transportation other than my bicycle. I’m sure I’m not alone, and it’s got me thinking. How exactly has this lockdown impacted oil demand? And perhaps more importantly, will this way of life become somewhat of a new normal?

18        Siemens Gamesa Turbines Begin Transatlantic Journey
https://www.offshorewind.biz/2020/04/22/siemens-gamesa-turbines-begin-transatlantic-journey/
The turbine components for the Coastal Virginia Offshore Wind (CVOW) pilot project have begun their journey from Denmark to North America.

The components for the two 6 MW Siemens Gamesa turbines were loaded in Esbjerg, before the vessel embarked in mid-April on the approximately two-week transatlantic journey to Halifax in Nova Scotia, Canada.

19        Cross currents: Big oil and the energy transition
https://blogs.platts.com/2020/04/21/big-oil-energy-transition-power-plays/
Well before the oil price rout caused by the coronavirus pandemic, commentators and shareholders were calling on Big Oil to make step-out energy transition acquisitions.

Now, with economies in lockdown and corporates fighting to survive, the oil sector’s incremental move into new energy looks over-cautious.

Business Intelligence and Analytics 61

Friday, April 24, 2020

Business Intelligence and Analytics 61

1          Global CEOs see U-shaped recession due to coronavirus: survey
https://www.reuters.com/article/us-health-coronavirus-business-survey-idUSKCN22403M
Global business leaders are preparing for a drawn-out U-shaped recession due to the impact of coronavirus and many fear their companies won’t survive the pandemic, a survey of thousands of chief executives showed on Wednesday.

2          IHS slashes 2020 global light vehicle sales outlook on coronavirus hit
https://www.reuters.com/article/us-ihs-auto-sales-idUSKCN2232CS
Data firm IHS Markit sharply lowered its 2020 forecast for global light vehicle sales on Tuesday and warned that the United States will take the biggest hit from the coronavirus pandemic.

IHS, which closely tracks automotive sales and production trends, said it expects global light vehicle sales to fall 22% to 70.3 million units in 2020, from prior estimates of a more than 12% drop.

3          Supply chain threatened with collapse, Woodmac warns
https://www.energyvoice.com/oilandgas/237028/supply-chain-threatened-with-collapse-woodmac-warns/
The upstream supply chain “faces the very real threat of collapse”, a new report from Wood Mackenzie has warned, setting the industry on the path of another crisis as demand recovers.

Suppliers and equipment providers are still in the process of recovering the last downturn, from 2014-16. Operators have taken steps amid the current crisis to cut hard and fast, securing their own survival but putting new pressures on the supply chain.

4          How Swarm Intelligence Blends Global and Local Insight
https://sloanreview.mit.edu/article/how-swarm-intelligence-blends-global-and-local-insight/
Traders deciding on the next big market bet. A navigation app quickly mapping out a less-explored area. Fashion brands choosing the hottest color of the season. An airport managing flight delays.

What do these scenarios have in common? In each one, swarm intelligence blends global and local insight to improve how businesses make decisions.

5          Analytics, Risk and Managing the 21st Century Supply Chain
https://knowledge.wharton.upenn.edu/article/analytics-risk-21st-century-supply-chain/
The business of moving goods from their point of origin to their destination anywhere on Earth is no small task, and the risks seem to be growing. As the COVID-19 pandemic is making painfully clear, in this time of crisis, several challenges are associated with providing caregivers with basic tools and remedies, which we all take for granted.

6          Robots, AI, and the road to a fully autonomous construction industry
https://venturebeat.com/2020/04/23/robots-ai-and-the-road-to-a-fully-autonomous-construction-industry/

Built Robotics executives are fond of saying that their autonomous system for construction equipment, like dozers and excavators, might be further along than many autonomous vehicles. In fact, CEO Noah Ready-Campbell insists you’ll see autonomous vehicles in controlled industrial environments — like construction sites — before you see level 5 driverless cars on public roads. That may be in part because autonomous construction equipment often operates on privately owned land, while public roads face increased regulatory scrutiny.

7          Emerging Strategy Lessons from COVID-19
https://bcghendersoninstitute.com/emerging-strategy-lessons-from-covid-19-c1e5f9a7ba83
The COVID-19 crisis has posed a number of severe challenges for businesses, from reacting to the outbreak, preparing for a potential recession, anticipating an eventual rebound in demand and placing bets against the post-crisis landscape. But it also provides an opportunity for organizations to step back and assess their approach to strategy and their strategic capabilities. As the context in which businesses operate becomes more dynamic and unpredictable, driven by the pace of technological change and a high degree of interconnectedness, we should expect other shocks of a similar nature moving forward, whether the trigger comes from biological pathogens, cyberattacks, market crashes, or another sources. Some will be exogenous to the business world, but some will be endogenous.

8          Coronavirus: Industrial IoT in challenging times
https://www.mckinsey.com/industries/advanced-electronics/our-insights/coronavirus-industrial-iot-in-challenging-times

Industrial companies expected 2020 to bring economic pressure from ongoing trade disputes, the aftermath of Brexit, automotive-industry challenges, and slowing demand in China. But none anticipated that the COVID-19 pandemic would throw the global economy, and their own operations, into an unprecedented crisis. As the coronavirus continues to spread, governments, healthcare authorities, and business leaders are focused on preserving lives and containing the pandemic. In parallel, they want to lessen the humanitarian toll by protecting the livelihoods of millions of workers who are now furloughed, unemployed, or in danger of losing their jobs.

9          Managing manufacturing organizations during coronavirus
https://www.mckinsey.com/business-functions/operations/our-insights/managing-a-manufacturing-plant-through-the-coronavirus-crisis

Frontline manufacturing staff can’t take their work to the relative safety of their homes. Plant leaders are therefore looking for ways to operate through the immediate crisis—all while preparing for a potentially much longer period of heightened uncertainty regarding demand and supply, and a lasting need to maintain enhanced hygiene and physical distancing.

10        Here’s why you can’t find frozen fries, while U.S. farmers are sitting on tons of potatoes
https://www.reuters.com/article/us-health-coronavirus-french-fries-analy-idUSKCN2261AU
Shopper Lexie Mayewski is having a hard time finding frozen french fries in Washington, D.C.-area supermarkets in the wake of coronavirus-fueled stockpiling.

On the other side of the country, Washington state farmer Mike Pink is weighing whether to plow under 30 tons of potatoes worth millions of dollars that would have been turned into french fries for fast-food chains like McDonald’s Corp, Wendy’s Co and Chick-fil-A.

11        Coronavirus stockpiling drives best Nestle sales growth in years
https://www.reuters.com/article/us-nestle-results-idUSKCN2260K7
Swiss food giant Nestle (NESN.S) reported its best quarterly sales growth in nearly five years on Friday as consumers stockpiled everything from Purina pet food to Nescafe coffee to frozen meals to prepare for coronavirus lockdowns.

Sales in North America and Europe were particularly strong in March, helping to drive an overall rise of 4.3% in the first three months of the year, the fastest quarterly growth in nearly five years and above analyst expectations for a 3% increase.

12        Plastic Really Is Fantastic, and So Are the People Working in this Industry
https://www.plasticstoday.com/medical/plastic-really-fantastic-and-so-are-people-working-industry/90050551362894

During the last few weeks, we have received a deluge of press releases from plastic processors telling us about the time and resources — both human and material — they are devoting to making PPEs and other plastic products for those on the front lines of this pandemic, as well as medical devices for patients. The stories you’ve sent us are overwhelming; unfortunately, we can’t report on each initiative, but we do want to thank each and every one of you for your generous efforts to aid this country.

13        A Customer Churn Analysis Checklist
https://www.business2community.com/customer-experience/a-customer-churn-analysis-checklist-02304399

It is critical to manage churn especially in this time of uncertainty As topline growth may be stagnant due to the crisis, it’s even more important to protect your core base and reduce churn.

Customer churn analysis can provide you and your teams with valuable insight into what drives your current churn rate and potential improvements. You need to understand what outcome / value your customers are trying to achieve from your products and services. You also need to measure them and track how you are doing against delivering on the outcome. If you don’t, they will churn.

14        5 Tips for Practicing Employee Engagement Amidst the COVID-19 Pandemic
https://www.business2community.com/human-resources/5-tips-for-practicing-employee-engagement-amidst-the-covid-19-pandemic-02300396

The prevailing COVID-19 pandemic has bought the entire world to its knees. Not even a single country which also includes some of the world’s most powerful nations are able to cope up to this crisis. And with the present-day health-care system falling apart in our fight against this unseen adversary. The only option to safeguard human lives is now depended on maintaining proper hygiene and practising social distancing.

15        Complaining is Bad for Your Company, According to Science
https://www.business2community.com/strategy/complaining-is-bad-for-your-company-according-to-science-02304061

We’re all guilty of complaining from time-to-time. And, in some situations, that’s not a bad thing.

“Complaining allows us to achieve desired outcomes such as sympathy and attention,” says Robin Kowalski, a psychology professor at Clemson University. “The truth is, everybody does it.”

But, the constant complaining. No one wants to hear it. And, more importantly, it can damage you personally and professionally.

16        Training, support duties stand out in marketing technologists’ list of responsibilities
https://martechtoday.com/training-support-duties-stand-out-in-marketing-technologists-list-of-responsibilities-240605

If you asked more than 200 marketing technologists to list their primary responsibilities, you’d think “operating marketing technology products” would be a more popular response over “training staff.” But, that doesn’t appear to be the case according to our 2020 Career Survey findings.

According to the more than 250 marketing technologists we surveyed, 82 percent listed “training and supporting marketing staff on martech products” as part of their responsibilities, compared to the 77% who listed operating marketing tech products.

17        Free High-Quality Machine Learning & Data Science Books & Courses: Quarantine Edition
https://www.kdnuggets.com/2020/04/machine-learning-data-science-books-courses-quarantine.html
Do you have the luxury of being stuck at home right now? Due to COVID-19, many of us are relegated to being locked down, quarantined, sheltered in place, or the like for the time being. If you find yourself in this situation and are looking for free learning materials in the way of books and courses in order to take advantage and sharpen your data science and machine learning skills, this collection of articles I have previously written curating such things is for you. Altogether, you will find links to smaller collections of just such materials, totalling more than 100 high quality books and courses.

18        American quandary: how to secure weapons-grade minerals without China
https://www.reuters.com/article/us-usa-rareearths-insight-idUSKCN2241KF
The United States wants to curb its reliance on China for specialized minerals used to make weapons and high-tech equipment, but it faces a Catch-22.

It only has one rare earths mine – and government scientists have been told not to work with it because of its Chinese ties.

19        Batteries: Powering The Fight Against Climate Change
https://www.woodmac.com/news/opinion/batteries-powering-the-fight-against-climate-change/
It’s been four years since the Paris Agreement was negotiated, yet global emissions have continued to rise each year. To achieve the agreed 2°C goal, global emissions need to peak as soon as possible and trend towards net-zero by 2070.

Major cities around the world have seen significant falls in greenhouse gasses in recent weeks as the coronavirus affects work, travel and industrial activity. As a consequence, many countries will unintentionally experience lower emissions this year.

Energy, Petrochemicals and Plastics 60

Friday, April 17, 2020

Energy, Petrochemicals and Plastics 60

1          Oil Set for Weekly Loss on Feeble Demand
https://www.rigzone.com/news/wire/oil_set_for_weekly_loss_on_feeble_demand-17-apr-2020-161799-article/

Oil was stuck near $20 a barrel and set for a second weekly loss after a wave of gloomy demand forecasts outweighed optimism that a deal from the world’s biggest producers would alleviate virus-led demand losses.

OPEC expects demand for its crude to fall to the lowest in three decades as the coronavirus outbreak freezes the global economy, the group said Thursday. That followed a prediction from the International Energy Agency that 2020 could be the worst year in the history of the oil market. Futures slumped to an 18-year low this week, even after a historic agreement to curb supply.

2          Higher Natural Gas Prices Are On The Horizon
https://oilprice.com/Energy/Energy-General/Higher-Natural-Gas-Prices-Are-On-The-Horizon.html
The oil price crash has attracted all the media attention to the dire state of the U.S. crude oil-producing sector with cash-strapped drillers struggling to make any money at $20 oil. The collapse of the price of oil, however, could be the first step toward higher U.S. natural gas prices as early as next winter, helping the gas-oriented shale firms who survive the next few months to have their gas selling for more than double the current rates.

3          Weekly Resin Report: Prices Slip, but Don’t Crater, in Spot PE Market
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-prices-slip-don-t-crater-spot-pe-market/124589085562827

Spot polyethylene (PE) prices were steady to a penny lower last week, while polypropylene (PP) prices firmed a cent based on higher propylene monomer costs, reports the PlasticsExchange in its Market Update.

4          Setback or shock: when will plastics demand bounce back from coronavirus?
https://www.britishplastics.co.uk/blogs/guest-blog/setback-or-shock-when-will-plastics-demand-bounce-back-from-/

The immediate challenge revolves around supply chain disruptions. Given the global and complex nature of sourcing, many industry participants have had significant challenges accessing and delivering material. Border controls have tightened, leading to lengthy logistics delays.

These difficulties have had an immediate impact. As the coronavirus spread in China, we saw a sudden surge in both producer and trader polyethylene inventories.

5          Single-use plastic turns out to be an unlikely hero in corona battle
https://www.livemint.com/news/india/single-use-plastic-turns-out-to-be-an-unlikely-hero-in-corona-battle-11586723058100.html

Single-use plastic (SUP), which is considered an environmental hazard, is now redeeming itself in an uncanny way by protecting doctors and other health workers from the deadly virus.

The threat of a ban loomed large over SUP till a few months ago. However, the demand for the product, which is used in making personal protective equipment (PPE), has nearly doubled since the virus outbreak.

6          Rethinking the value chain | Hydrocarbon Engineering
https://www.hydrocarbonengineering.com/special-reports/14042020/rethinking-the-value-chain/
Downstream organisations with exposure to logistics and marketing (including retail marketing) have typically seen higher earnings than pure independent/merchant refiners. The importance of vertical integration was clearly seen in 2015 – 2016 when oil prices fell to multi-year lows. Vertically integrated downstream companies – those with marketing channels, as well as midstream operations – fared better during this downturn than the pure-play merchant refiner selling at the rack. Marketers saw strong margin uplift through their branded channels and midstream operations provided ratable income.

7          Western Canadian Select Falls Below $5
https://oilprice.com/Latest-Energy-News/World-News/Western-Canadian-Select-Falls-Below-5.html
Canadian oil is struggling. And I mean really, really having a tough time. Alberta’s benchmark, Western Canadian Select, is now cheaper than a pint of beer. Sitting at $4.71 at the time of writing, WCS is facing a nightmare scenario.

8          Oil Demand Won’t Bounce Back Anytime Soon
https://oilprice.com/Energy/Energy-General/Oil-Demand-Wont-Bounce-Back-Any-Time-Soon.html
Oil demand is expected to be down by nearly 30 million barrels per day (mb/d) in April and down by almost 10 mb/d for the entire year, according to the latest estimates. But some forecasts still optimistically assume that demand bounces back in the second half of the year, a scenario that may not come to pass.

9          US shale oil output set to drop in 2020 as cuts forecast to reach more than 2 million bpd in last quarter
https://www.rystadenergy.com/newsevents/news/press-releases/us-shale-oil-output-set-to-drop-in-2020-as-cuts-forecast-to-reach-more-than-2-million-bpd-in-last-quarter/

Due to the combined effect of the Covid-19 pandemic and the low oil prices, US shale operators are reducing spending, production and overall activity in 2020. Although the country’s oil production was previously poised for annual growth of 8.1%, based solely on interpretation of operators’ guidance, Rystad Energy is projecting a decline of at least 2.7% year-on-year (US Lower 48 excl. Gulf of Mexico).

10        Coronavirus Has Wiped Out A Decade Of Oil Demand Growth
https://oilprice.com/Energy/Crude-Oil/Coronavirus-Has-Wiped-Out-A-Decade-Of-Oil-Demand-Growth.html
But the destruction in oil demand is both larger and much more immediate. April demand is expected to be down by 29 mb/d, according to the International Energy Agency (IEA). Oddly, so many forecasts from investment banks have predicted a V-shaped recovery for the global economy, but that scenario appears increasingly optimistic.

11        Saudis and Russia Hint at Further Action
https://www.rigzone.com/news/wire/saudis_and_russia_hint_at_further_action-17-apr-2020-161801-article/

Saudi Arabia and Russia signaled they may be open to further output cuts after the latest OPEC+ deal to curb global oil supplies failed to stem crude’s downward spiral.

The two nations will “continue to closely monitor the oil market and are prepared to take further measures jointly with OPEC+ and other producers if these are deemed necessary,” Russian Energy Minister Alexander Novak and his Saudi counterpart Prince Abdulaziz bin Salman said in a joint statement published after a phone call.

12        Coronavirus chaos could lead to new order for LNG markets
https://blogs.platts.com/2020/04/16/coronavirus-new-order-lng-markets/
Amid the coronavirus outbreak, the ephemeral nature of energy markets makes it difficult to offer certainty regarding our mainstays of forecasting: supply, demand, inventory, or price.

How much the new normal will be different from the old normal will not be revealed anytime soon, but in the case of global gas and LNG markets, it’s constructive to focus on structural problems that existed well before anyone ever heard of “social distancing.”

13        U.S. natural gas slips as exports decline, coronavirus demand destruction worries
https://www.bicmagazine.com/industry/natgas-lng/u-s-natural-gas-slips-as-exports-decline-coronavirus-demand-/

U.S. natural gas futures slipped for a fifth day in a row on Wednesday as pipeline and liquefied natural gas (LNG) exports declined and on long-term forecasts government steps to slow the spread of coronavirus will cut demand in coming months, as reported by Reuters.

Traders noted those price decline came despite a slowdown in output and short-term forecasts for cooler weather and higher heating use over the next two weeks than earlier expected.

14        Oil Price Crash Is Upending The Petrochemicals Industry
https://oilprice.com/Energy/Energy-General/Oil-Price-Crash-Is-Upending-The-Petrochemicals-Industry.html
While the U.S. shale production decline is the immediate outcome of the price collapse, low crude oil prices have triggered a chain of events in the energy markets that will inevitably impact the supply chain of the petrochemicals industry, analysts say.

There could be trouble brewing in the petrochemicals supply chain because of the oil price collapse, IHS Markit said in a recent analysis.

15        COVID-19: 3m b/d oil demand at risk if travel habits change
https://blogs.platts.com/2020/04/17/coronavirus-oil-demand-risk-travel/
Global air, road and rail travel have been massively reduced as governments attempt to limit the spread of coronavirus, taking a heavy toll on short-term oil demand.

Clearly, the mandated restrictions will lift when the pandemic eases and low oil prices will further aid in stimulating oil demand. However, it is possible that consumer behavior could be altered structurally, with impacts that persist even once the pandemic has ended.

16        Automotive-linked petrochemicals brace for deeper car industry slump
https://www.icis.com/explore/resources/news/2020/04/17/10497155/automotive-linked-petrochemicals-brace-for-deeper-car-industry-slump

Petrochemicals extensively used in the automotive sector are bracing for a deeper industry downturn as consumer priorities change amid a pandemic-induced global recession.

Synthetic rubbers, polypropylene (PP), acrylonitrile-butadiene-styrene (ABS), polystyrene (PS), among others will witness an unprecedented slump in demand.

17        Shell greenlights $6.4 billion Australia natural gas project
https://www.reuters.com/article/us-shell-petrochina-australia-idUSKBN21Z08C
Royal Dutch Shell said on Friday it had taken a final investment decision to develop the first phase of Australia’s biggest coal seam gas resource in Queensland state.

18        Why Mexico is the winner in OPEC+ deal, Rystad explains
https://www.offshore-energy.biz/why-mexico-is-the-winner-in-opec-deal-rystad-explains/
Following a historic OPEC+ deal to reduce global oil output in an effort to save the oil industry, Mexico came out as an unlikely winner since it was able to negotiate a production cut of only 100,000 barrels per day. Rystad Energy estimates that this will in effect be at a 50,000 bpd reduction at most.

19        Mexico Pacific hires financial advisor as it looks towards LNG FID
https://www.offshore-energy.biz/mexico-pacific-hires-financial-advisor-as-it-looks-towards-lng-fid/
Japan’s MUFG is one of the world’s largest publicly traded financial institutions and Mexico Pacific believes that this move would largely help the developer in advancing its Pacific Coast LNG export project.

“With its breadth of knowledge and experience and strong relationships with leading lenders and investors globally, MUFG’s appointment represents another important milestone in Mexico Pacific’s aggressive advancement to FID”, said chief executive Douglas Shanda.

20        Petrobras to shut down 62 offshore platforms in Brazil
https://www.offshore-energy.biz/petrobras-to-shut-down-62-offshore-platforms-in-brazil/
In an update on Wednesday, Petrobras said it would shut down 62 platforms in shallow water fields in the Campos, Sergipe, Potiguar, and Ceará basins.

These measures are part of Petrobras plan communicated to the market on 26 March and is part of a series of actions to preserve jobs and the company’s sustainability in what is the worst crisis in the oil industry in a hundred years.

21        New setback for Keystone XL oil pipeline as U.S. court rules against new permit
https://www.cbc.ca/news/business/keystone-xl-montana-ruling-1.5533863
A U.S. court on Wednesday ruled against the U.S. Army Corps of Engineers’ use of a permit that allows new energy pipelines to cross water bodies, in the latest setback to TC Energy Corp.’s plans to build the Keystone XL oil pipeline.

Keystone XL, which would carry 830,000 barrels per day of crude from Alberta to the U.S. Midwest, has been delayed for more than a decade by opposition from landowners, environmental groups and tribes, but construction was finally supposed to start this spring following a major investment by the Alberta government.

22        Medical Tubing Demand for Ventilators Soars amid COVID-19 Pandemic
https://www.plasticstoday.com/medical/medical-tubing-demand-ventilators-soars-amid-covid-19-pandemic/11766089662839

The urgent need for medical products stemming from the COVID-19 pandemic has caused some companies to enter uncharted territory. Carmakers from Ford Motor Co. to Mercedes suddenly are tasked with producing respirators and 3D printing medical components. Lego has retooled some of its injection molding lines to make visors for medical personnel. The list goes on. For companies with a medical manufacturing pedigree, the issue is not the learning curve, but suddenly ramping up production to meet soaring demand. That is the case for extruders of medical tubing, many of which are looking to add capacity, according to Graham Engineering Corp. Headquartered in York, PA, the company offers medical extrusion systems through its American Kuhne product line.

23        Borealis Completes Acquisition of Nova’s 50% Ownership Share in Novealis
https://www.ptonline.com/news/borealis-completes-acquisition-of-novas-50-ownership-share-in-novealis
Borealis AG (U.S. office in Houston, Texas) and Nova Chemicals Corp. (U.S. office in Pittsburgh) have announced that Borealis has complete the acquisition of Nova’s 50% ownership interest in Novealis Holdings LLC.

Formed in 2018, Novealis is the joint venture between affiliates of Borealis and Nova Chemicals, which subsequently formed a 50/50 joint venture with an affiliate of Total S.A (U.S. office in Houston, Texas) to launch Bayport Polymers LLC (“Baystar”) in Houston.

24        PEMEX expects its oil hedges to generate $311 million this year
http://www.worldoil.com/news/2020/4/15/pemex-expects-its-oil-hedges-to-generate-311-million-this-year

Mexico’s Petroleos Mexicanos expects to receive some relief from its oil hedge this year as producers grapple with a record slump in demand.

“The Finance Ministry has full coverage, and in the case of Pemex it is a part of our production,” said Pemex Chief Executive Officer Octavio Romero at a press conference in Mexico City, attended by President Andres Manuel Lopez Obrador.

25        U.S. crude stocks jump by a record 19 million barrels as refiners cut back: EIA
https://www.reuters.com/article/us-usa-oil-eia-idUSKCN21X280
U.S. crude oil stockpiles rose by 19 million barrels last week, the biggest one-week increase in history, the U.S. Energy Information Administration said, as refiners throttled back activity due to slumping demand as a result of the coronavirus pandemic.

26        Plastic Film Market Outlook Remains Positive Despite Short-Term Impact of COVID-19
https://www.plasticstoday.com/packaging/plastic-film-market-outlook-remains-positive-despite-short-term-impact-covid-19/36796064662834

Plastic film is getting a lot of attention, as awareness grows of the need for safety in packaging. The U.S. stretch and film market, like the manufacturing sector overall, is seeing a major short-term impact, both in terms of sales and production during the ongoing pandemic, said the Freedonia Group’s latest study on the stretch and shrink film market.

27        Soaring mask demand raises Chinese polypropylene prices; China announces quality, price controls
https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/041520-soaring-mask-demand-raises-chinese-pp-prices-china-announces-quality-price-controls

Chinese polypropylene prices surged 35% on the week at Yuan 8,600/mt ex-works for raffia grade Monday on reduced raffia supply and stronger fiber-grade demand for making masks. The prices corrected Yuan 350/mt day on day at Yuan 8,250/mt ex-works Tuesday after the government announced strict quality and price controls amid rising demand.

28        China Plans To Copy Mexico’s Mega Oil Hedge
https://oilprice.com/Energy/Crude-Oil/China-Plans-To-Copy-Mexicos-Mega-Oil-Hedge.html
This weekend, OPEC and its partners managed to agree on a historic oil production cut to the tune of 9.7 million bpd. The initial number the cartel eyed was 10 million bpd, some 300,000 bpd higher than what it managed to agree upon.

Most global oil producers were happy to cut output in the face of the greatest glut in history, but one nation wasn’t keen on participating.

Recycling, Renewables and Sustainable Business 31

Friday, April 17, 2020

Recycling, Renewables and Sustainable Business 31

1          EV Sales Could Crash By 43% This Year
https://oilprice.com/Energy/Energy-General/EV-Sales-Could-Crash-By-43-This-Year.html
Sales of electric vehicles, which in 2019 topped 2.2 million, could plunge 43% this year, Wood Mackenzie said in a recent report. The reason: the travel bans in response to the coronavirus and a looming recession, which has dampened people’s appetite for new purchases, especially costly ones such as a new car. The economic situation, the Wood Mac analysts also noted, is also likely to increase people’s aversion to new technology adoption.

2          Scientists set new solar power efficiency record at almost 50 per cent
https://reneweconomy.com.au/scientists-set-new-solar-power-efficiency-record-at-almost-50-per-cent-71555/

Scientists at the National Renewable Energy Laboratory (NREL) in the US have set a new world record solar energy conversion efficiency, producing an innovative solar cell that converts light into electricity with almost 50 per cent efficiency.

The new solar efficiency world record was set by NREL researchers using a “six-junction” solar cell, that used 140 layers of semiconductor materials to achieve a conversion rate of 47.1 per cent.

3          The Oil Price Crash Could Trigger A Geothermal Energy Boom
https://oilprice.com/Alternative-Energy/Geothermal-Energy/The-Oil-Price-Crash-Could-Trigger-A-Geothermal-Energy-Boom.html

‘Geothermal is America’s untapped energy giant,’ the U.S. Department of Energy said in a report last year, highlighting in its analysis that this kind of “always-on” flexible renewable energy resource could grow 26-fold to generate 8.5 percent of U.S. electricity by 2050.

Unlike wind and solar, geothermal energy is a 24/7 energy resource, but the technologies to explore and drill for resources and build facilities make geothermal energy more expensive than other renewables.

4          Shell unveils plans to become net-zero carbon company by 2050
https://www.theguardian.com/business/2020/apr/16/shell-unveils-plans-to-become-net-zero-carbon-company-by-2050

Royal Dutch Shell plans to become a net zero-carbon company by 2050 or sooner by selling more green energy to help reduce the carbon intensity of its business.

Ben van Beurden, Shell’s chief executive, said the company must focus on the long-term “even at this time of immediate challenge” caused by the Covid-19 pandemic.

5          What’s Holding The Renewable Revolution Back?
https://oilprice.com/Alternative-Energy/Renewable-Energy/Whats-Holding-The-Renewable-Revolution-Back.html

For at least the last decade, renewable energy seems to have been accelerating at a ferocious pace. Every other day you can read about a new technological breakthrough or another incredible milestone being achieved. And yet… overall energy consumption continues to be dominated by fossil fuels.  Source: Our World In Data

While the achievements made in the renewable energy space, some of which are listed below, are undoubtedly impressive, there is a long way to go before a full energy transition can take place.

6          Tracking global energy transition in turbulent times
https://blogs.platts.com/2020/04/15/tracking-global-energy-transition-solar-coal/

The global power capacity mix has already been shifting toward renewables. S&P Global Platts Analytics estimates that solar photovoltaic, wind and hydro made up almost 67% of total power capacity additions over the past year. The question is whether renewables investments will accelerate, but so far we do not see major signs that this could happen soon.

7          Three pathways to decarbonization of shipping
https://www.offshore-energy.biz/three-pathways-to-decarbonization-of-shipping/
There are three potential fuel pathways toward developing zero-emission vessels and decarbonizing the future of shipping, according to ABS.

The US-based classification society just released the 2020 Setting the Course to Low-Carbon Shipping — Pathways to Sustainable Shipping outlook, which maps out the path toward decarbonization goals of the global fleet.

The three fuel pathways are: (i) light gas, (ii) heavy gas-alcohol, and (iii) biofuel or synthetic fuels.

8          Spain’s Iberdrola targets Denmark’s Ørsted for top spot in U.S. offshore wind market
https://ieefa.org/spains-iberdrola-targets-denmarks-orsted-for-top-spot-in-u-s-offshore-wind-market/
Spanish utility group Iberdrola wants to be the biggest player in the U.S. offshore wind market, but it will need to go through early market front-runner Ørsted to get there.

Iberdrola, among the world’s largest wind power generators, plans to steamroll its way through the coronavirus crisis, with CEO Ignacio Galán announcing plans this month to increase investment in renewables projects and continue adding jobs as soon as the public health crisis is over. Up to a quarter of the €10 billion ($11 billion) the company plans to invest this year will go toward offshore wind.

9          Europe Is Sinking Billions into Beating Asia on Energy Storage. Will It Pay Off?
https://www.greentechmedia.com/articles/read/europe-sinks-billions-into-research-to-beat-asia-on-batteries

Europe is sinking billions of dollars into research in an attempt to overturn Asia’s dominance of the battery market, but analysts believe it could be in vain.

Along with various national initiatives, the European Union has put half a billion euros ($550 million) into battery projects within its Horizon 2020 global competitiveness program, which had a total budget of €80 billion ($88 billion) from 2014 to 2020.

10        ‘Coronavirus profiteers’ condemned as polluters gain bailout billions
https://www.theguardian.com/environment/2020/apr/17/coronavirus-profiteers-condemned-as-polluters-gain-bailout-billions

Polluting industries around the world are using the coronavirus pandemic to gain billions of dollars in bailouts and to weaken and delay environmental protections.

The moves by the fossil fuel, motor, aviation, farming, plastic and timber sectorsare described as dangerous and irresponsible by senior figures. Environmental campaigners describe some participants in these industries as “coronavirus profiteers”.

11        The Western U.S. Has Some Of America’s Strongest Clean Energy Goals. It Needs More Grid Flexibility To Achieve Them.
https://www.forbes.com/sites/energyinnovation/2020/04/15/the-western-us-has-some-of-americas-strongest-clean-energy-goals-it-needs-more-grid-flexibility-to-achieve-them/

Western states like California, Colorado, and Nevada have enacted some of the country’s most ambitious climate laws, with at least five aiming for more than 50% clean energy within the decade.

This quilt of climate goals targets 33% and 64% clean energy across the region by 2026 and 2035, according to research prepared for the Western Interstate Energy Board, which finds the West could meet or exceed these targets – but only by boosting electric grid flexibility.

12        Clean energy transition plans imperiled by oil’s crash
http://www.worldoil.com/news/2020/4/15/clean-energy-transition-plans-imperiled-by-oil-s-crash
The pain felt by Big Oil from the coronavirus-led plunge in demand may derail global efforts to cut pollution, the International Energy Agency said.

The slowdown and falling prices “undermines the ability of the oil industry to develop some of the technologies needed for clean energy transitions around the world,” said the Paris-based agency that advises nations on energy policy.

13        Canada’s emissions count jumped 15M tonnes in 2018: report
https://www.canadianmanufacturing.com/environment-and-safety/canadas-emissions-count-jumped-15m-tonnes-in-2018-report-251172/

A new federal report on Canada’s greenhouse-gas emissions shows they soared 15 million tonnes in 2018.

Canada’s latest report shows in 2018 Canada’s total emissions count was 729 million tonnes of carbon dioxide and its equivalents.

14        Australia renewables hit 50% of main grid’s net demand on Easter Saturday
https://reneweconomy.com.au/australia-renewables-hit-50-of-main-grids-net-demand-on-easter-saturday-91084/

Renewable energy hit what may be a record level of renewable energy on grid demand in the early afternoon on Easter Saturday, when the combined output of rooftop solar, large scale wind and solar and hydro power accounted for 50.4 per cent of net load.

The 50 per cent share of renewables – which even the federal Coalition government now conceded will be an “annual average” by 2030, rather than a figure reached during a point in time – was attained just after noon on Easter Saturday, traditionally a time of low demand, and perhaps more so given the impact of the Covid-19 pandemic.

15        Olive oil industry under increasing threat from ‘olive leprosy’
https://www.theguardian.com/world/2020/apr/13/olive-oil-industry-under-increasing-threat-from-olive-leprosy

One of southern Europe’s most important staples, olive oil, is under pressure from a potentially deadly disease that new research shows could infect nearly all of the productive areas of Italy, Greece and Spain.

Economic losses could be as high as €5bn over the next 50 years for Italy, where at least 1m trees have already died, if nothing is done to halt the spread of the disease and olive groves are not replanted, the study found. In Spain, losses could total €17bn over the same period, and Greece could suffer to the tune of about €2bn.

Business Intelligence and Analytics 60

Friday, April 17, 2020

Business Intelligence and Analytics 60

1          Coronavirus’s impact on supply chain
https://www.mckinsey.com/business-functions/operations/our-insights/supply-chain-recovery-in-coronavirus-times-plan-for-now-and-the-future

Even as the immediate toll on human health from the spread of coronavirus (SARS-CoV-2), which causes the COVID-19 disease, mounts, the economic effects of the crisis—and the livelihoods at stake—are coming into sharp focus. Businesses must respond on multiple fronts at once: at the same time that they work to protect their workers’ safety, they must also safeguard their operational viability, now increasingly under strain from a historic supply-chain shock.

2          Three Scenarios to Guide Your Global Supply Chain Recovery
https://sloanreview.mit.edu/article/three-scenarios-to-guide-your-global-supply-chain-recovery/
On Friday, Feb. 28, 2020, technology executive Pierre Haren and I published a short article in which we predicted “that the peak of the impact of COVID-19 on global supply chains will occur in mid-March, forcing thousands of companies to throttle down or temporarily shut assembly and manufacturing plants in the U.S. and Europe.” This prediction was accurate; see, for example, the closing of automotive factories in Europe and the U.S. or luxury brands shutting down their manufacturing activities in Europe.

3          Global economy will suffer worst year since Great Depression of 1930s, IMF says
https://www.cbc.ca/news/business/imf-worst-year-since-depression-1.5531430
Beaten down by the coronavirus outbreak, the world economy in 2020 will suffer its worst year since the Great Depression of the 1930s, the International Monetary Fund says in its latest forecast.

The IMF said Tuesday that it expects the global economy to shrink three per cent this year — far worse than its 0.1 per cent dip in the Great Recession year of 2009 — before rebounding in 2021 with 5.8 per cent growth. It acknowledges, though, that prospects for a rebound next year are clouded by uncertainty.

4          Alphabet soup: How will post-virus economic recovery shape up?
https://www.reuters.com/article/us-health-coronavirus-economy-graphic-idUSKCN21R242
Will be it a U? A V? Maybe a W? Predictions for economic recovery after coronavirus-linked lockdowns are throwing up a medley of letters to indicate whether we can expect a bounceback, a slow-burn recovery or relapse.

Of more than 50 economists polled by Reuters, some forecast the world economy will shrink as much as 6% in 2020. The other extreme was a prediction for 0.7% growth. The average was a 1.2% contraction.

5          Everything You Need To Know About Big Data in 2020
https://datafloq.com/read/everything-you-need-to-know-about-big-data-2020/8213
You would be hearing a lot about big data. Just like its name, Big Data is the biggest thing in the marketplace. Perhaps, you just have heard that this technology is creating a number of job opportunities around the world.

While businesses are considering this technology a breakthrough, it is both a challenge and opportunity for developers & experts.

6          Rolls-Royce launches Emer2gent, an alliance to hasten economic recovery from coronavirus using data analytics
https://venturebeat.com/2020/04/16/rolls-royce-launches-emer2gent-an-alliance-to-hasten-economic-recovery-from-coronavirus-using-data-analytics/

An alliance of companies led by Rolls-Royce will work to develop new ways of supporting businesses and governments as they recover from the economic impact of COVID-19, the automaker announced this morning. Google Cloud, IBM, the Leeds Institute for Data Analytics, Truata, The Data City, and ODI Leeds have pledged to join Emer2gent, which will combine traditional economic, business, travel and retail data sets with behavior and sentiment data to provide new insights into — and applications to support — the global recovery from COVID-19.

7          Connecting with customers during a crisis
https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/connecting-with-customers-in-times-of-crisis

The COVID-19 global humanitarian and economic crisis has forced individuals and companies to rapidly change how they live and work. Many elements of business and life are being challenged; in some cases, the next normal may look very different as new ways of working are carried over into the future. Companies are doing their best to manage through this pandemic—from ensuring an effective crisis response, 1 to managing supply-chain disruptions, 2 to safeguarding the well-being of their employees by adjusting daily working practices. 3

8          The Insignificance of Significance Testing
https://towardsdatascience.com/the-insignificance-of-significance-testing-6f6a5a91589
And so scientists are naturally concerned with finding good criteria to judge if the results they obtained are really worth reporting. The idea of significance testing tries to establish objective measures that help to separate the wheat of science from the chaff of science.

The most popular criteria for statistical significance is probably (I’m 95 percent sure) the p-value. But as we will see, this seemingly “best” criteria can open the door to a whole new set of problems. It can make shady results look solid, can give nothing the air of significance, can hide bad research behind a deceptive sense of objectivity.

9          Unlocking Business Potential with Digital Data Optimization
https://www.informationweek.com/big-data/unlocking-business-potential-with-digital-data-optimization/a/d-id/1337445

Recent research from technology industry trade association CompTIA suggests that enterprises looking to maximize the value of their data need to implement new practices. According to the Trends in Data Management report, many organizations are currently working with a blank slate when it comes to data optimization simply because advanced data practices haven’t been positioned as a top priority.

10        Visualizing Decision Trees with Python (Scikit-learn, Graphviz, Matplotlib)
https://www.kdnuggets.com/2020/04/visualizing-decision-trees-python.html
Decision trees are a popular supervised learning method for a variety of reasons. Benefits of decision trees include that they can be used for both regression and classification, they don’t require feature scaling, and they are relatively easy to interpret as you can visualize decision trees. This is not only a powerful way to understand your model, but also to communicate how your model works. Consequently, it would help to know how to make a visualization based on your model.

11        Explainable AI: The key to Responsibly Adopting AI in Medicine
https://insidebigdata.com/2020/04/16/explainable-ai-the-key-to-responsibly-adopting-ai-in-medicine/
In this special guest feature, Niv Mizrahi, CTO & Co-Founder of Emedgene, discusses a field of technology that constantly is rising in importance – explainable (or interpretable) AI, and specifically how it has become a key responsibility for adopting AI in medicine. Emedgene is a genomics company using AI to automatically interpret genetic data so that health organizations can scale personalized care to wider populations. An expert in machine learning and big data, Niv has led Emedgene’s development from idea to a mature solution used by leading genomics labs.

12        How to Make Your (Now Virtual) Event Shine
https://sloanreview.mit.edu/article/how-to-make-your-now-virtual-event-shine/
7 Strategies for Better Virtual Conferencing

The first three strategies are about how to engage your audience. This is always the most important aspect to consider when communicating in any medium. The next four strategies involve the production of your videoconference, which may depend on the technology and resources you have at your disposal.

13        How business leaders can plan for the next normal
https://www.mckinsey.com/featured-insights/leadership/the-future-is-not-what-it-used-to-be-thoughts-on-the-shape-of-the-next-normal

Dealing with the coronavirus crisis and its aftermath could be the imperative of our times. Indeed, we have argued that it augurs the “imminent restructuring of the global economic order.” As Ian Davis, one of our previous managing partners, wrote in 2009 in the midst of the global financial crisis:

“For some organizations, near-term survival is the only agenda item. Others are peering through the fog of uncertainty, thinking about how to position themselves once the crisis has passed and things return to normal. The question is, ‘What will normal look like?’ While no one can say how long the crisis will last, what we find on the other side will not look like the normal of recent years.”

14        Business Networking Isn’t Dead – It’s Not Even in Hibernation
https://www.business2community.com/small-business/business-networking-isnt-dead-its-not-even-in-hibernation-02302296

I heard on the grapevine, OK it was someone posting on LinkedIn, that business networking is meant to be dead in the wake of COVID-19 and I was actually stunned that they thought the world had stopped networking.

As many of us rapidly find ourselves and our businesses forced to close doors, hibernate or adapt it is understandable that in the face of these kinds of restrictions be it trading or simply an inability to gather in groups of more than two, that you could be forgiven for thinking that networking as we know it is in hibernation too.

15        Dive Into Deep Learning: The Free eBook
https://www.kdnuggets.com/2020/04/dive-deep-learning-book.html
Thanks to the current realities associated with COVID-19, lots of us around the world are spending more time at home than we normally do, and some of us may have additional idle time on ours hands. For those of us looking to spend some of this idle time learning something new or reviewing something previously learned, we have been (and hope to continue) spotlighting a few select standout textbooks of interest in data science and related fields. This is the next entry in the series.

16        In the Face of a Pandemic, Can Pharma Shift Gears?
https://sloanreview.mit.edu/article/in-the-face-of-a-pandemic-can-pharma-shift-gears/
The COVID-19 pandemic may well prove to be the biggest challenge for humankind since World War II. Pharmaceutical companies will be key to fighting a disease that is bringing health care systems to their knees and sending shock waves through economies across the globe. They have the scientific know-how, the management capabilities, and the physical and technological capacities to develop treatments — and, ultimately, a vaccine against the virus.

17        Microsoft plans Planetary Computer to assess the Earth’s health
https://venturebeat.com/2020/04/15/microsoft-planetary-computers-environment-land-ai-for-earth/
Microsoft today announced a series of initiatives aimed at advancing the protection and preservation of biodiversity and ecosystems around the world. It said that it would support the development of a “Planetary Computer” to aggregate environmental data and would leverage AI to develop and deploy technology that helps partners and customers with sustainable decision-making. Microsoft also said that it would advocate for public policy initiatives that measure and manage ecosystems and that it’d expand its AI for Earth program to give grantees greater access to machine learning tools.

18        Ten Guidelines for Creating Opportunities in a Time of Crisis
https://knowledge.wharton.upenn.edu/article/ten-guidelines-create-opportunities-coronavirus-crisis/
The truth is that every crisis, while deeply unsettling, also contains the seeds of opportunity. When we face the kind of dramatic crisis we do today, we need to remember three things:

How do we cope with this crisis now? This question is uppermost in people’s minds – as it should be – and it also tends to dominate the news.

What opportunities does this crisis create?

What can be done to anticipate crises in the future and prepare for them? Even if it isn’t possible to preempt a future crisis, how can we prepare to respond rapidly and effectively?

19        Hobbled by coronavirus, China’s first-quarter GDP shrinks for first time on record
https://www.reuters.com/article/us-china-economy-gdp-idUSKBN21Z08Q
China’s economy contracted for the first time on record in the first quarter as the coronavirus shut down factories and shopping malls and put millions out of work.

Gross domestic product (GDP) fell 6.8% in January-March year-on-year, official data showed on Friday, a slightly larger decline than the 6.5% forecast by analysts and reversing a 6% expansion in the fourth quarter of 2019.

Energy, Petrochemicals and Plastics 59

Friday, April 10, 2020

Energy, Petrochemicals and Plastics 59

1          Weekly Resin Report: Prices Continue to Spiral Down
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-prices-continue-spiral-down/196001843762791

Just like the world at large, the mood at the spot resin market last week is best characterized as nervous. There was a lot of quoting but not much buying, as many participants seemed to be probing the market for ideas of price and availability, reports the PlasticsExchange in its Market Update. Still, overall interest was active, which led to good completed volumes at the resin clearinghouse’s trading desk.

2          Mexico accepts oil output deal, says Trump resolved its impasse with OPEC+
http://www.worldoil.com/news/2020/4/10/mexico-accepts-oil-output-deal-says-trump-resolved-its-impasse-with-opecplus

Mexico said it has reached an agreement with OPEC+ for deep oil-production cuts, after an intervention from U.S. President Donald Trump resolved an overnight impasse.

However, delegates from the Organization of Petroleum Exporting Countries said they were unaware of the terms of the deal to which Mexican President Andres Manuel Lopez Obrador was referring.

3          Saudi, Russia seek to finalise oil cuts in G20 talks, want U.S. involved
https://www.reuters.com/article/us-global-oil-g20-energy-idUSKCN21S19K
Saudi Arabia, Russia and their allies will press Mexico on Friday to join an accord for collective oil production cuts equivalent to 10% of global supplies and will push the United States and other producers to remove a further 5%.

The plan for cuts top the agenda for Friday’s video conference of energy ministers from the Group of 20 (G20) major economies, after Moscow, Riyadh and others in the OPEC+ group forged a deal in marathon talks on Thursday, only to have it stumble when Mexico balked at the initiative.

4          Goldman Sachs: 10 million bpd cut by top oil producers not enough
https://www.reuters.com/article/us-global-oil-research-goldman-idUSKCN21R0QW
Goldman Sachs said a 10 million barrel-per-day (bpd) cut by major producers would not be enough to improve global balances in a market reeling from a coronavirus-led demand collapse and a mounting supply glut.

5          Oil Could Fall Back To $20
https://oilprice.com/Energy/Oil-Prices/Oil-Could-Fall-Back-To-20.html
The decline in demand could cause inventories to fill up, enforcing substantial curtailments by refineries and shut ins at oil wells, according to a new report from Rystad Energy. The hit to demand will “last longer” than previously expected, as more countries impose lockdown orders while “the spread of the virus will resist restrictions more than we first expected,” the firm said. Rystad sees a demand hit of around 20 mb/d in May and more than 15 mb/d in June. Demand growth remains negative for the duration of 2020.

6          Why The OPEC+ Output Cut Is Irrelevant
https://oilprice.com/Energy/Crude-Oil/Why-The-OPEC-Output-Cut-Is-Irrelevant.html
I’m in favor of the global output cut orchestrated by President Trump but let’s recognize it for what it is: largely irrelevant. Mohammed bin Salman and Vladimir Putin were glad to burn down the world a month ago when they walked away from production cuts. They had dueling temper tantrums in the junior high locker room while the world descended into economic Armageddon. To Trump’s credit, he may have found a way for them to reverse their terrible blunder, save face and emerge looking like much better guys than they really are.

7          OPEC+ Deal Won’t Solve The Oil Storage Crisis
https://oilprice.com/Energy/Crude-Oil/OPEC-Deal-Wont-Solve-The-Oil-Storage-Crisis.html
It was going to be a reasonably good year for oil. OPEC+ would continue to keep a lid on production to keep prices above dangerous levels, and U.S. shale would continue to expand.   But a series of events–some predictable and some not-so-predictable would change the trajectory of the global oil market.

8          BP’s U.S. Refineries Cut Run Rates As Demand Crumbles
https://oilprice.com/Latest-Energy-News/World-News/BPs-US-Refineries-Cut-Run-Rates-As-Demand-Crumbles.html

Sources told Reuters last week that BP has reduced refinery run rates at its 430,000-bpd refinery in Whiting, Indiana, the 242,000-bpd Cherry Point, Washington, refinery, and the 155,000-bpd in Toledo, Ohio, refinery, due to low demand from U.S. consumers.

9          Petrochemical plant constructions slow as pandemic threatens workforce
https://www.bicmagazine.com/departments/engineering-construction/pu-petrochemical-plant-constructions-slow-as-pandemic-threat/

Concern about the virus spreading in construction sites, where up to several thousand workers congregate and share facilities, have had immediate consequences and in some cases indefinitely extended timelines.

While petrochemical companies did not report output declines in March 2020, construction projects have dramatically slowed or even crawled to a halt due to the Covid-19 pandemic.

10        Braskem revises petchem production rates to avoid unnecessary inventories
https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/040920-braskem-revises-petchem-production-rates-to-avoid-unnecessary-inventories

Brazilian petrochemical producer Braskem is revising its production rates on a weekly basis to avoid unnecessary inventories, according to Pedro van Langendonck, the company’s CFO.

“We are adjusting our production. Some plants are running close to full capacity, some other plants are below that,” Langendonck said Wednesday at its fourth-quarter conference call.

11        China’s PP fibre output up on demand for surgical masks, protective gears
https://www.icis.com/explore/resources/news/2020/04/10/10495115/china-s-pp-fibre-output-up-on-demand-for-surgical-masks-protective-gears

A large number of Chinese producers have switched to making polypropylene (PP) fibre amid a spike in global demand for surgical masks and personal protective gears.

The rise in production, supported by even greater demand, had led to steep gains in prices of the product.

12        Why Covid-19 Is The Ultimate Energy Transition Stress Test For Refiners
https://www.woodmac.com/news/feature/why-covid-19-is-the-ultimate-energy-transition-stress-test-for-refiners/

Refining has always been a challenging business, but global capacity has continued to grow despite periodic bouts of rationalisation in OECD countries. The energy transition introduces the threat of oil demand peaking before 2040, which makes refinery investment decisions even more difficult.

13        Is U.S. Energy Dominance Coming To An End?
https://oilprice.com/Energy/Crude-Oil/Is-US-Energy-Dominance-Coming-To-An-End.html
America’s era of “energy dominance” was brief.

The slogan was always silly. Leaving aside the extensive environmental fallout, the notion that a debt-fueled drilling boom allowed the U.S. to “dominate” energy markets in some way never really made sense. And despite a substantial increase in production over the past decade, activity is and always was connected with the global market – aggressive drilling never insulated the American economy from these global forces, at least not in the way that industry-friendly politicians seemed to think.

14        Canadian oil production could fall 25% before post-COVID ‘resurgence’
https://www.cbc.ca/news/business/enbridge-monaco-oilpatch-covid-19-1.5525276
With an American election at this year, the chief executive of Enbridge was already expecting 2020 to be a “choppy” year for the company, since presidential candidates can have differing viewpoints on whether major pipeline projects should proceed and on the oilpatch, as a whole.

15        Molecular Fusion Technology Permanently Embeds Antimicrobials in Polymer Substrates
https://www.plasticstoday.com/medical/molecular-fusion-technology-permanently-embeds-antimicrobials-polymer-substrates/67993994262775

A new proprietary line of polymer fusion products with antimicrobial blocking agents has been introduced by Polyfuze Graphics Corp. The products are designed to exceed the rigid labeling standards of the medical, food service, reusable packaging, and health services industries. The labeling technology for olefins developed by the Clarkdale, AZ–based company relies on pigmented polymers to create permanently fused labels for products in the medical, food packaging, outdoor sports and automotive sectors.

16        COVID-19 Reframes Debate on Single-Use Plastic Bags
https://www.plasticstoday.com/packaging/covid-19-reframes-debate-on-single-use-plastic-bags/24749037262781

As cities and states grapple over whether or not plastic retail bags are safer than reusable totes during the coronavirus crisis — and try to decide to ban or not to ban single-use plastic bags — the plastics industry continues to promote the benefits of plastic across a wide range of applications. These benefits are, after all, why plastic became so ubiquitous in the first place: Consumer safety, improved shelf life (less food waste), and hygiene, to name just a few.

17        Demand up in a time of crisis | Special report
https://www.packagingnews.co.uk/features/demand-time-crisis-special-report-covid-19-07-04-2020
A pandemic that threatens the lives of millions across the globe sounds like the plot to a Hollywood blockbuster. But that is what we are all living through. Coronavirus (Covid-19) is deadly to the elderly and anyone with underlying health problems, and faced with such a growing problem it’s no surprise governments globally have reacted by closing off boarders, locking down cities and preaching social distancing.

18        Graphic: Oil majors cut 2020 spending by 22% after prices slump
https://www.reuters.com/article/us-global-oil-majors-capex-graphic-idUSKBN21J516
Cuts announced by nine major oil companies, including Saudi Aramco, Exxon Mobil and Royal Dutch Shell, come to a combined $38 billion, or a drop of 22% from their initial spending plans of $175 billion.

Exxon on Tuesday cut its 2020 budget by $10 billion to $23 billion.

BP has cut its 2020 spending plan by 25% and will reduce output from its U.S. shale oil and gas business.

Recycling, Renewables and Sustainable Business 30

Friday, April 10, 2020

Recycling, Renewables and Sustainable Business 30

1          Coronavirus Unnerves US Wind Energy Market During a Record Year for Construction
https://www.greentechmedia.com/articles/read/coronavirus-rattles-us-wind-market-during-a-record-year-for-installations

After a decade of dramatic ups and downs, 2020 was supposed to be a climactic year for U.S. wind farm construction. Instead, with the coronavirus pandemic rattling supply chains and thinning workforces, things could get messy for an industry that should be taking a victory lap.

Developers are poring over force majeure provisions in their contracts. Investors are nervous. Without political relief, projects could get canceled outright, industry figures say — and relief in Washington, D.C. looks anything but certain.

2          Electric Vehicles: Coronavirus Wreaks Havoc Across The Supply Chain
https://www.woodmac.com/news/opinion/electric-vehicles-coronavirus-wreaks-havoc-across-the-supply-chain/

As challenging as it is, the coronavirus is an anomalous event. It may stall the electrification of the transport industry, but the direction of travel remains unchanged – the fight against climate change is still very much on.

Automakers haven’t changed their carbon-neutral goals and we don’t expect governments to defer or cancel policies designed to phase out internal combustion engine (ICE) vehicles. And while it’s tempting to think that the oil price crash is bad news for EV adoption, in reality the purchase price, charging infrastructure and available models currently have a much greater impact on sales.

3          Scientists create mutant enzyme that recycles plastic bottles in hours
https://www.theguardian.com/environment/2020/apr/08/scientists-create-mutant-enzyme-that-recycles-plastic-bottles-in-hours

A mutant bacterial enzyme that breaks down plastic bottles for recycling in hours has been created by scientists.

The enzyme, originally discovered in a compost heap of leaves, reduced the bottles to chemical building blocks that were then used to make high-quality new bottles. Existing recycling technologies usually produce plastic only good enough for clothing and carpets.

4          Global corporate PV funding down 31% amid Covid-19 crisis
https://www.pv-magazine.com/2020/04/08/global-corporate-pv-funding-down-31-amid-covid-19-crisis/
The global business climate has dramatically deteriorated amid the ongoing public health crisis caused by the Covid-19 outbreak, and the solar sector is no exception, with a whopping 31% decrease in corporate funding for solar projects, according to a new report by Mercom Capital Group.

5          Global storage deployments could see hit in 2020, but ‘fundamental drivers’ still remain, analysts say
https://www.utilitydive.com/news/global-storage-deployments-could-see-hit-in-2020-but-fundamental-drivers/575585/

If the pandemic causes an economic downturn and restrictions on the movement of goods and people continue through the second quarter of the year, analysts would need to shave 3 GWh of storage capacity from prior estimates. The firm also forecasts a 10% reduction in the supply of lithium-ion batteries. However, the global storage market is still expected to grow 13-fold by 2025, to 230 GWh, and the total pot of energy storage investments is predicted to increase from $18 billion last year to $100 billion by 2025.

6          Addressing climate change post-coronavirus
https://www.mckinsey.com/business-functions/sustainability/our-insights/addressing-climate-change-in-a-post-pandemic-world

A ferocious pandemic is sweeping the globe, threatening lives and livelihoods at an alarming rate. As infection and death rates continue to rise, resident movement is restricted, economic activity is curtailed, governments resort to extraordinary measures, and individuals and corporations scramble to adjust. In the blink of an eye, the coronavirus has upended the world’s operating assumptions. Now, all attention is focused on countering this new and extreme threat, and on blunting the force of the major recession that is likely to follow.

7          Siemens and Uniper develop joint decarbonization plan for power generation
http://www.worldoil.com/news/2020/4/8/siemens-and-uniper-develop-joint-decarbonization-plan-for-power-generation

Uniper and Siemens Gas and Power signed a cooperation agreement for the development of projects on the decarbonization of power generation and promoting sector coupling. It extends the long-standing partnership between the two companies. It is important to look at the energy, mobility and industry sectors together, because they all can and must contribute to reducing greenhouse gases. One focus of the planned cooperation is the production and use of “green hydrogen” – in other words, hydrogen from renewable energy sources. The companies intend to implement projects in this field together, addressing the entire value chain.

8          Renewables Account for Almost Three Quarters of New Capacity in 2019
https://www.irena.org/newsroom/pressreleases/2020/Apr/Renewables-Account-for-Almost-Three-Quarters-of-New-Capacity-in-2019

The renewable energy sector added 176 gigawatts (GW) of generating capacity globally in 2019, marginally lower than the (revised) 179 GW added in 2018. However, new renewable power accounted for 72 per cent of all power expansion last year, according to new data released by the International Renewable Energy Agency (IRENA).

9          For the Ohio River Valley, an Ethane Storage Facility in Texas Is Either a Model or a Cautionary Tale
https://insideclimatenews.org/news/09042020/ethane-plant-appalachia-mont-belvieu-texas
The Trump administration and industry leaders have pointed to a major petrochemical storage complex outside Houston as a model for the upper Ohio River Valley.

If only they could find a place like Mont Belvieu, Texas, where geological features allow for large-scale underground storage of the chemicals used to make plastic products, there could be an economic resurgence to follow the collapse of steel and coal. Tens of thousands of jobs would follow.

10        Investor Pressure Forces Barclays To Sign Up To Net Zero Target
https://www.forbes.com/sites/mikescott/2020/04/10/investors-pressure-forces-barclays-to-sign-up-to-net-zero-target/

One of the biggest global financiers of fossil fuel projects has announced that it wants to become a net zero carbon company by 2050, in the latest sign that the move to a low-carbon economy is well under way.

The resolution, by U.K.-based Barclays, says the bank has an “ambition” to become a “net-zero bank” by mid-century, and follows intense pressure from shareholders. In January, 11 large institutional shareholders filed another, stricter resolution demanding that the bank phase out lending to energy companies, gas and electric utilities that are not aligned with the Paris climate agreement, which aims to keep average global temperature rise to “well below 2C above pre-industrial levels”.

11        Rapid renewables growth brings challenges for US: Part I
https://blogs.platts.com/2020/04/08/us-renewables-growth-california-curtailment/
Renewable power generation growth in the US is soaring and is expected to overtake natural gas-fired power generation by 2045, according to the US Energy Administration, leading to major concerns about the reliability of these intermittent resources and the significant impacts they will have on US power supply and prices.

12        Part II – Northeast and ERCOT
https://blogs.platts.com/2020/04/09/us-renewables-challenges-northeast-ercot/
California has emerged as a case study for the difficulties power system operators face in the transition to renewables energy. Those challenges, from rapid renewables growth and market penetration, are just beginning to be felt in other regions of the US.

13        Record-size hole opens in ozone layer above the Arctic
https://www.theguardian.com/environment/2020/apr/07/record-size-hole-opens-in-ozone-layer-above-the-arctic

A rare hole has opened up in the ozone layer above the Arctic, in what scientists say is the result of unusually low temperatures in the atmosphere above the north pole.

The hole, which has been tracked from space and the ground over the past few days, has reached record dimensions, but is not expected to pose any danger to humans unless it moves further south. If it extends further south over populated areas, such as southern Greenland, people would be at increased risk of sunburn. However, on current trends the hole is expected to disappear altogether in a few weeks.

14        Market Size Is Expected to Reach USD 18.9 Billion by 2027
https://www.energytrend.com/news/20200407-16849.html
The global smart electricity meters market size is expected to reach USD 18.9 billion by 2027. The market is anticipated to expand at a revenue-based CAGR of 7.8% from 2020 to 2027. The rising demand for energy security has been prevailing in the energy sector for a long time. Renewable energy generation has sufficed this demand to a certain extent. Still, the energy provided by such systems is intermittent, and thus energy conservation and efficient utilization of power are the key aspects of energy security. Smart meters deliver instantaneous data regarding power consumption that can be analyzed and the consumption can be controlled, stabilizing the energy demands.

Business Intelligence and Analytics 59

Friday, April 10, 2020

Business Intelligence and Analytics 59

1          How to Optimize Supply Chain Management with Big Data
https://bigdataanalyticsnews.com/optimize-supply-chain-management-with-big-data/
Having big data by itself is of little use unless subjected to proper analytics with defined objectives in focus. Plan adequately for it with superior data systems alongside cloud-based technologies for better collection, storage, analytics, and faster speeds as traditional ERP and SCM systems may not cope.

2          Coronavirus is bringing to light ‘cracks in US infrastructure and supply chain’
https://www.energy-storage.news/news/coronavirus-is-bringing-to-light-cracks-in-us-infrastructure-and-supply-cha

The COVID-19 crisis is bringing into the public eye the US’ dependency on importing goods, particularly batteries for advanced energy storage and electric vehicles, the CEO of a battery materials startup has said.

Dr Francis Wang, head of Nanograf, a US company working to commercialise a high energy density battery anode made with a composite of silicon and ‘curved’ graphene, replacing existing anodes which use graphite, said that the situation created by the novel coronavirus “is bringing to light… cracks in US infrastructure and the supply chain”.

3          How to Make Better Decisions About Coronavirus
https://sloanreview.mit.edu/article/how-to-make-better-decisions-about-coronavirus/
Decision-making becomes most important in times of crisis, and this certainly is one of those times. But it also becomes more challenging, too, during periods of stress and most difficult when future outcomes are uncertain — which describes the current period as well. One reason is because cognitive decision biases are likely to appear in highly changeable, high-stress environments, influencing decisions in damaging ways.

4          A Long Time Until the Economic New Normal
https://sloanreview.mit.edu/article/a-long-time-until-the-economic-new-normal/
We are in the middle of a historic rupture in the economic fabric of our society. The COVID-19 pandemic has already had a pervasive impact on the United States, and economic and financial market experts are hotly debating how quickly the economy will recover once we get “on the other side” of the contagion and the enormous pressures it has placed on our health care system. Although it is too early to estimate the exact economic impact, it is likely that full recovery of economic activity, including GDP growth, jobs, and unemployment, will take at least a year, and likely much longer.

5          Coronavirus putting world on track for new Great Depression, says WTO
https://www.theguardian.com/world/2020/apr/08/coronavirus-putting-world-on-track-for-new-great-depression-says-who

International trade has dried up as a result of the Covid-19 pandemic and could be on course for a collapse as severe as that of the 1930s Great Depression, the World Trade Organization has said.

The Geneva-based WTO, responsible for policing the global trading system, said even the most optimistic scenario for 2020 was that trade would shrink by 13%, a bigger drop than in the 2008-09 recession caused by the banking crisis.

6          What Employees Need to Hear From Leaders in Times of Crisis
https://sloanreview.mit.edu/article/what-employees-need-to-hear-from-leaders-in-times-of-crisis/
Amid the COVID-19 crisis, our professional (and personal) futures feel more uncertain by the hour. Businesses are experiencing unimaginable disruptions, to the point where some are worried about their very survival. Organizations that serve downstream supply chains are no exception. None of us is immune to the current state of our world, our towns, our companies, and our teams — and front-line workers, most at risk in a number of ways, may be even more aware of the uncertainty than their leaders when times get tough.

7          We Will Need All the Automation We Can Get
https://www.informationweek.com/big-data/ai-machine-learning/we-will-need-all-the-automation-we-can-get/a/d-id/1337411

Enterprise automation is not a cause for alarm but a societal imperative. Here’s why.

It’s a prediction that has been made for decades, even centuries. Technology-driven automation is about to trigger mass unemployment. In today’s rendition this means that there will soon be no need for truck drivers, fast food workers, retail store staff, middle managers, and machine operators — even doctors, lawyers, bankers and accountants are at imminent risk. What will we all do?

8          Successful Use Cases of Artificial Intelligence for Businesses
https://www.kdnuggets.com/2020/04/successful-use-cases-ai-business.html
Self-learning and Automation of workflow are not new terms in the professional world. In fact, they are the two most basic advice given to humans by their fellow mates. Learning from our past experiences and the experiences of others and getting the work done in a way that reduces the effort while not compromising with the efficiency have been the key contributors of all major breakthroughs in any field.

9          5 Ways How the Corona Crisis Will Change Organisations
https://datafloq.com/read/5-ways-corona-crisis-will-change-organisations/8178
Humankind is facing the biggest crisis of our generation. Across the globe, economies are coming to a standstill. Globalisation has been put on pause, and once the virus recedes, we will have to get used to the ‘1,5-meter economy’. For social creatures like humans, this social distancing will prove to be difficult.

10        6 Smart Ways to Retain Your Customer Base Amid COVID-19 Outbreak
https://www.business2community.com/small-business/6-smart-ways-to-retain-your-customer-base-amid-covid-19-outbreak-02300577

The recent COVID-19 outbreak has turned the world upside down and has disrupted the way we do business. Business owners are scrambling to keep up with the rapidly changing economy. It’s clear that this pandemic will continue to leave lasting impacts across the digital marketing world. Even though the world is in quarantine and almost everybody is at home, it’s important to keep in touch with your customers or otherwise, you’ll lose them.

11        How to Survive the COVID-19 Pandemic as a Service Business
https://www.business2community.com/strategy/how-to-survive-the-covid-19-pandemic-as-a-service-business-02300608

The last few weeks have turned the world on its head. You may be working from home. Or social distancing with your family or roommates, working on solutions for your business. You might have had to make really hard decisions lately. You may be feeling uneasy or stressed, or lost. In recent weeks, many governments have announced that all non-essential businesses must close. This is heartbreaking for many local business owners, despite the obvious necessity of this measure from a public health perspective. Many businesses had already closed earlier in March to prevent the spread of the virus and to protect their employees and customers.

12        Coronavirus threat to global peace and stability, UN chief warns
https://www.theguardian.com/world/2020/apr/10/coronavirus-threat-to-global-peace-and-stability-un-chief-warns

The head of the United Nations has called the coronavirus pandemic the “fight of a generation” and a threat to world peace and security.

The secretary general, Antonio Guterres, warned the UN security council that the pandemic had the potential to increase social unrest and violence, which would greatly undermine the world’s ability to fight the disease.

It was, he said, the UN’s most grave test since it was founded 75 years ago and had already hindered efforts to resolve international, regional and national conflicts.

13        Storytelling with data.

What is an area graph, how does an area graph work, and what is an area graph good for? —
http://www.storytellingwithdata.com/blog/2020/4/9/what-is-an-area-graph
An area graph is a specialized form of the line graph, where instead of simply connecting our data points with a continuous line, we also fill in the region below that line with a solid color. This might seem to be a minor cosmetic change, but it has a significant effect on how we perceive the data in the chart.

14        WTO sees ‘ugly’ trade plunge, likely worse than financial crisis
https://www.reuters.com/article/us-trade-wto-idUSKBN21Q1VM
The World Trade Organization on Wednesday forecast that goods trade would shrink more steeply this year than in the global financial crisis a decade ago before rebounding in 2021 as the COVID-19 pandemic recedes – if countries worked together.

The WTO said global trade would fall this year by between 13% and 32%, giving a wide range because so much about the economic impact of the health crisis was uncertain.

Energy, Petrochemicals and Plastics 58

Friday, April 3, 2020

Energy, Petrochemicals and Plastics 58

1          Oil Price Fundamental Daily Forecast – Short-Covering Rally Fueled by Hope of Output Deal
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-short-covering-rally-fueled-by-hope-of-output-deal-642280

U.S. West Texas Intermediate and international-benchmark crude oil futures are trading higher on Friday on increased expectations of a production cut by OPEC and other major producers known as OPEC+.

The markets are following through to the upside following record gains on Thursday after U.S. President Donald Trump said he had brokered a deal that could result in Russia and Saudi Arabia cutting output by 10 million to 15 million barrels per day (bpd), representing 10-15% of global supply. Trump also said he made no offer to cut U.S. output.

2          Natural Gas Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-oil-price-war-truce-could-trigger-short-covering-rally-642262

Natural gas futures are trading higher on Friday after hitting a multi-year low the previous session. Thursday’s weekly U.S. Energy Information Administration (EIA) storage report failed to move the needle much although most traders interpreted the report as bearish. The reluctance to short the market at current levels on bearish data suggests investors may fear being caught on the wrong side if Russia and Saudi Arabia agree to crude oil production cuts.

3          Weekly Resin Report: Processors in Holding Pattern, Waiting for Sharper Price Slides
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-processors-holding-pattern-waiting-sharper-price-slides/134317936062734

Last week’s spot resin markets were not immune to the economic uncertainty wrought by the COVID-19 pandemic. While there was a good flow of both buy and sell inquiries, processors were generally apprehensive to pull the trigger, and, ultimately, the completed volumes were less than average, reports the PlasticsExchange in its Market Update.

4          Global gas prices to remain weak until 2022: Rystad Energy
https://www.reuters.com/article/us-health-coronavirus-gas-idUSKBN21K1QC
Global gas prices this year will average even lower than previously expected due to the effects of the novel coronavirus and look set to remain weak for a few years, consultancy Rystad Energy said on Thursday.

Before the virus outbreak, gas prices were already below average due to an oversupply of liquefied natural gas (LNG) in the market.

5          Wood Mackenzie releases gas and LNG outlook
https://www.lngindustry.com/liquid-natural-gas/01042020/wood-mackenzie-releases-gas-and-lng-outlook/
Wood Mackenzie research director, Robert Sims, said: “While the collapse of LNG prices towards US production breakevens was foreseeable, the narrative for the rest of 2020 could not be more unpredictable.

“An already oversupplied LNG market comes out of a mild winter with high inventories across Europe and Asia, only to face a global pandemic which has already destroyed gas demand across China and looks increasingly set to do the same across the Asia Pacific and Europe.

6          Coronavirus and the petrochemicals industry
https://www.britishplastics.co.uk/bprblogs/guest-blog/coronavirus-and-the-petrochemicals-industry/
The coronavirus outbreak has touched virtually every aspect of modern life. For the petrochemicals industry, the landscape is shifting at an alarming pace. Only one thing seems certain: the coming decade will be shaped by this crisis. Consumer behaviour, investment decisions, the corporate landscape and even the path of globalisation will be influenced by its effects.

7          ICIS China March petrochemical index slumps on crude crash, pandemic woes
https://www.icis.com/explore/resources/news/2020/04/01/10488731/icis-china-march-petrochemical-index-slumps-on-crude-crash-pandemic-woes

Petrochemical prices in China slumped in March, hit by heavy losses in upstream crude market just as the country was emerging from severe pandemic-related restrictions that nearly ground its production and trades to a halt in February.

8          April petrochemicals prices drop as COVID-19 infection rate rises
https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/040220-april-petrochemicals-prices-drop-as-covid-19-infection-rate-rises

The collapse in power prices across Europe has stalled a number of power purchase agreement (PPA) negotiations in the UK, Italy, Spain, the Nordics and Germany, Luca Pedretti, chief operating officer and co-founder of PPA advisory and software business Pexapark, told S&P Global Platts in an interview Wednesday.

9          Oil price rebounds on hopes Saudi Arabia and Russia will reach deal
https://www.theguardian.com/business/2020/apr/02/oil-price-rebounds-on-hopes-saudi-arabia-and-russia-will-reach-deal

Global oil prices rebounded to more than $30 a barrel for the first time in almost a month on Thursday after Saudi Arabia and Russia signalled a possible truce in a price war that has triggered the fastest oil market collapse in decades.

The price of Brent crude leapt by 30% after the US president, Donald Trump, fanned hopes of a new deal between Riyadh and Moscow to help stabilise the oil market.

10        OPEC+ debates biggest ever cut as virus destroys oil demand
https://www.reuters.com/article/us-oil-opec-cut-size-idUSKBN21L15A
OPEC and allies are working on a deal for an unprecedented production cut equivalent to around 10% of global supply, an OPEC source said after U.S. President Donald Trump called on oil nations to stop the oil rout caused by the coronavirus pandemic.

11        The Only Logical End To The Oil War
https://oilprice.com/Energy/Energy-General/The-Only-Logical-End-To-The-Oil-War.html
The global oil and gas industry is in a state of utter distress and uncertainty at the moment. At a time where the coronavirus pandemic is decimating oil demand, the last thing that the oil world needed was an OPEC+ row that threatens to open the oil spigots in the world. Instead of taking measures to temporarily slash supply to keep up with the demand drop, Saudi Arabia and Russia are going head to head to increase supplies.

It is nigh impossible to model the current abnormal situation, as it is both temporary and unsustainable. While it is difficult to remain clear-eyed during all the confusion, one must imagine a pandemic-free world to model medium to longer term scenarios. In this case, one could appreciate the OPEC+ dilemma, which Figure-1 describes:

12        Deep OPEC+ cuts won’t be enough to prevent oil inventory build: IEA head
https://www.reuters.com/article/us-global-oil-iea-idUSKBN21L222
Deep oil output cuts by OPEC and other producing nations would not be enough to prevent a huge build in global crude inventories in the second quarter as measures to contain the coronavirus lead to “unprecedented” demand loss, the head of the International Energy Agency, Fatih Birol, said.

13        $5 Crude Could Put Canada’s Oil Sands Out Of Business
https://oilprice.com/Energy/Oil-Prices/5-Crude-Could-Put-Canadas-Oil-Sands-Out-Of-Business.html
Over the last few weeks, the higher breakeven costs for oil and the lack of sufficient takeaway capacity has come back to haunt Canada’s oil patch.  Two months ago, the Canadian Association of Petroleum Producers (CAPP) was expecting upstream capital investment in Canada’s oil sands to grow this year from 2019 for the first increase in capital expenditures in five years due to “a more competitive economic environment,” thanks to new policies of the Alberta government.

14        WoodMac: Coronavirus and the petrochemicals industry
https://www.bicmagazine.com/industry/refining-petchem/woodmac-coronavirus-and-the-petrochemicals-industry/

The coronavirus outbreak has touched virtually every aspect of modern life. For the petrochemicals industry, the landscape is shifting at an alarming pace. Only one thing seems certain: the coming decade will be shaped by this crisis. Consumer behaviour, investment decisions, the corporate landscape and even the path of globalisation will be influenced by its effects.

15        Lower for Longer – Chemical Sector
https://www.bicmagazine.com/industry/refining-petchem/lower-for-longer/
The global chemical sector should prepare for an extended downturn along with lower-for-longer oil prices, both of which will have big implications for profitability and investments, reports ICIS Chemical Business.

“It’s very possible that Q3 could have negative GDP as well [as Q2], and then the question is how big is the bounce back towards the end of the year?” said Rhian O’Connor, ICIS lead analyst, demand forecasting on an ICIS webinar this week.

16        Platts market on close shows commodity markets functioning despite COVID-19
https://blogs.platts.com/2020/04/02/platts-market-on-close-commodity-covid-19/
A key question for any market during times of uncertainty and volatility is what is happening to liquidity?

Over recent weeks commodity prices, and particularly oil markets, have seen unprecedented volatility. Although the forward view may become clearer, there is still huge uncertainty around fundamentals in the months ahead. S&P Global Platts has a unique insight into several key commodity markets through its Market on Close (MOC) assessment process.

17        Asia petrochemical makers recalibrate output amid pandemic-hit demand
https://www.icis.com/explore/resources/news/2020/04/03/10489918/asia-petrochemical-makers-recalibrate-output-amid-pandemic-hit-demand

Petrochemical producers in Asia are looking at further reducing output in the face of a sharp demand downturn and low crude prices that could last months amid a coronavirus pandemic.

Some downstream plants are bringing forward scheduled turnarounds to manage a strong inventory build-up, while economic activity in a huge swathe of the globe has virtually halted due to lockdowns.

18        Oil refiners face reckoning as demand plummets
https://www.bicmagazine.com/industry/refining-petchem/oil-refiners-face-reckoning-as-demand-plummets/

The global oil refining industry is facing a reckoning from falling fuel demand that is the deepest and fastest ever, as reported by Reuters.

Within weeks, the industry will need to cut output by 30% or more as the coronavirus pandemic keeps much of the world at home with little need to drive or fly. Smaller and financially weak oil refiners may not emerge from the crisis, say refining consultants and traders.

19        ‘It’s going to be very difficult and very painful’: Oilpatch begins layoffs and oil production cuts
https://www.cbc.ca/news/business/bonterra-mullen-wcs-wti-1.5516400
After several weeks of speculation about when the oilpatch would take significant steps in response to record low oil prices, companies in Western Canada are now beginning to pull back on oil production and layoff workers.

Heavy oil prices in Alberta have been hit the hardest, selling for under $4 US a barrel in recent days.

20        Why Alberta is throwing billions behind the Keystone XL pipeline
https://www.cbc.ca/news/business/analysis-alberta-invests-in-keystone-1.5516144
With the energy sector still reeling from weeks of economic turmoil, Alberta’s United Conservative government announced Tuesday it is throwing its financial heft behind the long-delayed Keystone XL pipeline.

The investment of $1.5 billion, plus a $6-billion loan guarantee, aims to accelerate construction of the massive project and was warmly greeted by a sector desperate for some good news.

21        Thermoformers Step Up to Produce Protective Gear for Healthcare Workers
https://www.plasticstoday.com/medical/thermoformers-step-produce-protective-gear-healthcare-workers/49704222062744

All across the country, manufacturers are stepping up as best they can to help healthcare providers struggling with shortages of medical equipment. In Janesville, WI, custom packaging supplier Prent Corp. has dedicated a line to the production of face shields needed by local healthcare facilities. In Kalamazoo, MI, Fabri-Kal will be delivering its first batch of face shields later this week to hospitals in southwest Michigan.

22        Saudi Belligerence Pushes VLCC Rates to Comedic Highs
https://www.rigzone.com/news/saudi_belligerence_pushes_vlcc_rates_to_comedic_highs-01-apr-2020-161585-article/

Whenever oil prices head lower for what is perceived to be a finite period of time, crude traders tend to go for contango plays. It is a market structure conveying expectations that the future price will be higher than the current spot price. For decades, whenever such a situation or the possibility of it has arisen, traders have hoarded oil, often in floating storage, hoping to sell it for higher prices further down the line.

23        Saudi Arabia to build two petrochemicals units for $1.8 billion
https://meconstructionnews.com/40287/saudi-arabia-to-build-two-petrochemicals-units-for-1-8-billion
SK Gas have formed a joint venture with Advanced Global Investment Company to setup the plants in Jubail Industrial City

Saudi Arabia’s Advanced Petrochemical Company has announced that it has signed a deal with South Korea’s SK Gas to set up two petrochemicals units for a combined value of $1.8 billion in the Kingdom.

24        Fitch Revises PTT Global Chemical to Negative; Affirms at ‘AA+(tha)‘
https://www.fitchratings.com/research/corporate-finance/fitch-revises-ptt-global-chemical-to-negative-affirms-at-aa-tha-31-03-2020

Fitch Ratings – Bangkok – 31 Mar 2020: Fitch Ratings (Thailand) Limited has revised PTT Global Chemical Public Company Limited’s (PTTGC) Outlook to Negative from Stable. The agency has also affirmed PTTGC’s National Long-Term Rating and senior unsecured rating at ‘AA+(tha)’ and National Short-Term Rating at ‘F1+(tha)’.

25        IHS Markit sees forced oil production cuts of 10MMbpd ahead
http://www.worldoil.com/news/2020/3/31/ihs-markit-sees-forced-oil-production-cuts-of-10mmbpd-ahead
Research firm IHS Markit expects up to 10 MMbpd of world oil production will be cut or shut-in from April to June 2020 as oil storage fills up and output from financially strapped companies begins to fall. If oil cannot be sold or stored, it cannot be produced. Transportation constraints and lack of access to every available tank will prevent the utmost maximum level of storage capacity being reached.